Congress to Consider Repeal of Medicare Demonstration Project Designed To Promote Privatization, Rather Than Yield Valid Results: Project Also Would Drive Up Premiums for Traditional Medicare

Publication Date: July 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Edwin Park; Robert Greenstein

Research Area: Health

Keywords: Economic projections; Federal budget; Health insurance; Health care costs

Type: Report

Abstract:

Well-designed demonstration projects can provide important tests of new policy ideas. Unfortunately, this project — which congressional conferees inserted in the drug law behind closed doors — “stacks the deck” in favor of private plans over traditional Medicare in order to produce an ideologically preordained result. Consequently, it likely would do more to mislead policymakers and the public than to illuminate the policy debate. It also is likely to create hardship for large numbers of beneficiaries in the demonstration areas by causing premiums for traditional Medicare to rise significantly in those areas.