Is Medicare contracting right for your managed care organization?

Americans older than 65 years represent the fastest-growing segment of the population. Today, the elderly comprise 12% of the population but account for one-third of health care spending. By the turn of the century, they will use half of these resources. Ironically, the elderly have been affected little by the managed care revolution; only 2.6 million have enrolled in HMOs that have contracts with the federal Medicare program to provide comprehensive health services to that population. In this article, the author explains the different types of Medicare managed care contracts, the advantages of these contracts, and how to succeed in this growing area of opportunity.