Six Million Enrolled in New Medicare+Choice Plans

WASHINGTON—At the beginning of 1999, more than 6 million of Medicare’s 40 million beneficiaries were enrolled in some 300 Medicare+Choice plans, the new managed care program instituted by the Health Care Financing Administration (HCFA). The move to Medicare+Choice was not without disruption, as health care organizations covering 400,000 Medicare recipients refused to renew their contracts with HCFA under the new payment arrangement.

In the year 2000, payments for patients enrolled in Medicare+Choice plans will be determined by a combination of local and national rates, which will be adjusted to reflect the relative health status of the enrollees.