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Health Aff (Millwood). 1995 Winter;14(4):47-61.

The FEHBP as a model for a new Medicare program.

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  • 1Heritage Foundation, Washington, DC, USA.

Abstract

The deficiencies of the Medicare program are rooted in its defined-benefit structure and in its use of price controls. Medicare should be transformed into a defined cash contribution made to beneficiaries' private plans or to the traditional Medicare program. The Federal Employees Health Benefits Program (FEHBP) is essentially such a system and is a good model for Medicare reform. The FEHBP has been highly successful at holding down costs while offering a wide range of benefits and types of plans. Its features for consumer information and plan standards also would be useful in a reformed Medicare program.

PMID:
8690362
[PubMed - indexed for MEDLINE]
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