Is the Medicare SELECT program a stepping-stone to managed care?

Under the Omnibus Budget Reconciliation Act of 1990, Medicare SELECT programs and standardized Medigap policies were made available to senior citizens. Medigap policies offer coverage to supplement Medicare benefits, and the SELECT program offers a PPO-like product that offers reduced premiums if the beneficiaries agree to enroll in a preferred network. HCFA's recent evaluation of the SELECT program indicated a variable success rate in enrollment and cost-effectiveness. Providers will need to develop a strategic position concerning their participation in the Medicare SELECT program, which should include knowledge of SELECT program incentives, economics of the SELECT contract, and Medicare market position. In addition, providers should assess whether the SELECT program is consistent with strategies to transition Medicare populations into managed care.