Abstract
Starting in 2006, almost all Medicare beneficiaries have at least one Medicare Advantage (MA) plan available to them. Although new regional preferred provider organization (R-PPO) plans authorized through the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003 contribute to this growth, private fee-for-service (PFFS) plans are more numerous and more popular with beneficiaries. Almost 1.5 million beneficiaries are in PFFS plans, 84 percent living in "floor" counties paid more by Medicare to encourage MA offerings. Whether beneficiaries are well served by policies that use scarce resources to encourage competition among largely unmanaged FFS plans is an issue that warrants discussion.
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