1、Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS21761Updated April 20, 2004Medicare Advantage: What Does It Mean ForPrivate Plans Currently Serving Medicare Beneficiaries?name redacted and Hinda R. ChaikindDomestic Social Policy D
2、ivisionSummaryThe Medicare Prescription Drug, Improvement and Modernization Act of 2003(P.L. 108-173) added a voluntary prescription drug benefit to Medicare and establishedthe Medicare Advantage program to replace the Medicare+Choice program. The actincreases payments to private plans beginning in
3、March 2004, creates a new competitiveprogram in 2006, adds a regional program also in 2006, and creates a temporary programthat requires traditional Medicare to compete with private plans in 2010. These changeswere designed to increase private plan participation and to increase competition inMedicar
4、e. Although plan participation is likely to increase in the short-term, long-termparticipation is unknown. This paper outlines major changes to the managed careprogram and indicates how these changes may affect participation. This report will notbe updated.IntroductionThe Medicare Prescription Drug,