Medicare Spending on HMOs and Stand-Alone Drug Plans: What is it Worth to Beneficiaries?

November 2008

What are the costs and benefits of supporting private Medicare health insurance plans? Steven D. Pizer, Ph.D., and colleagues examined how well stand-alone prescription drug plans and increased payments to HMOs improved the welfare of Medicare beneficiaries per dollar of additional federal spending. They found that the stand-alone prescription drug plans generate more value per government dollar. Learn more in the HCFO Findings Brief.