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The FEHBP as a model for a new Medicare program

S M Butler1, R E Moffit

  • 1Heritage Foundation, Washington, DC, USA.

Health Affairs (Project Hope)
|January 1, 1995
PubMed
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Medicare reform is needed due to its defined-benefit structure. A defined cash contribution model, like the Federal Employees Health Benefits Program (FEHBP), could improve cost control and benefit options.

Area of Science:

  • Health Policy
  • Economics
  • Public Health

Background:

  • Medicare's current defined-benefit structure and price controls lead to deficiencies.
  • The existing system struggles with cost containment and comprehensive benefit offerings.

Purpose of the Study:

  • To propose a reformed Medicare model based on a defined cash contribution.
  • To evaluate the Federal Employees Health Benefits Program (FEHBP) as a potential model for Medicare reform.

Main Methods:

  • Analysis of Medicare's structural deficiencies.
  • Examination of the Federal Employees Health Benefits Program (FEHBP) as a comparative model.
  • Assessment of FEHBP's success in cost control and benefit variety.

Main Results:

Related Experiment Videos

  • The Federal Employees Health Benefits Program (FEHBP) demonstrates success in managing costs.
  • FEHBP offers a wide array of benefits and plan choices.
  • FEHBP incorporates valuable consumer information and plan standardization features.

Conclusions:

  • Transforming Medicare into a defined cash contribution system is recommended.
  • The Federal Employees Health Benefits Program (FEHBP) provides a viable and successful model for Medicare reform.
  • Reformed Medicare could benefit from FEHBP's cost-control mechanisms and consumer-centric features.