Provider Opt-Out Under Medicare Private Contracting

The 1997 Balanced Budget Act (BBA) permits private contracting for care between Medicare beneficiaries and providers who have opted out of Medicare. This article examines the number and characteristics of providers who have opted-out, their role in the provision of Part B services, and their impact on beneficiary access from 1998 to 2002. Opt-out providers differ from providers remaining in Medicare with respect to specialty, practice characteristics, and Medicare Program activity. Very few providers found opting-out attractive and the departure of this small group of providers appears not to have created access problems for beneficiaries.