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Medicare: Uncertainties Surround Proposal To Expand Prepaid Health Plan Contracting

HRD-88-14 Published: Nov 02, 1987. Publicly Released: Nov 17, 1987.
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Highlights

Pursuant to a congressional request, GAO reviewed a Department of Health and Human Services (HHS) proposal seeking legislative authority to contract with employer-based health plans to provide Medicare benefits to the employers' retirees.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
If the House Ways and Means Committee, Subcommittee on Health, considers the HHS Medicare-insured group proposal, it should consider deferring authorizing implementation until HHS demonstrates that the Medicare-insured group rate-setting methods and beneficiary and program safeguards are reasonable and adequate.
Closed – Implemented
Section 4015 of the Omnibus Budget Reconciliation Act of 1987 limited HHS to funding three Medicare insured group demonstration projects and required that they be evaluated before program expansion.

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Topics

Employee medical benefitsEmployee retirement plansHealth care cost controlHealth insuranceHealth maintenance organizationsMedicareProposed legislationRetireesRetirement benefitsCapitation (medical care)