Second Status Report on Medicare Insured Group Demonstration Projects

HRD-90-117: Published: Jun 6, 1990. Publicly Released: Jun 6, 1990.

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Pursuant to a legislative requirement, GAO reviewed the status of the Medicare Insured Groups (MIG) project.

GAO found that: (1) a major utility and a life insurance company were analyzing the feasibility of using MIG to provide benefits to retirees; (2) the utility was continuing to develop its proposed method for determining Medicare payment rates, and the insurance company was still in the process of developing its health care delivery system; (3) neither MIG project had enrolled any Medicare beneficiaries; and (4) a major automobile manufacturer terminated its MIG demonstration project after a feasibility study showed that the project would not operate at a profit.

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