Rethinking Medicare Reform

Posted: 27 Sep 1999  

Theodore R. Marmor

Yale School of Management

Jonathan Oberlander

University of North Carolina (UNC) at Chapel Hill - Department of Social Medicine

Abstract

Many health policy analysts argue that demographic pressures, the inflationary nature of fee-for-service payment, and the uncontrollable nature of defined-benefit insurance make Medicare unsustainable in its current form. They assert that Medicare can remain fiscally viable in the next century only by embracing a voucher system and exposing beneficiaries to the economic consequences of their medical care decisions. We argue here, however that Medicare need not rely on vouchers or on placing financial incentives on individual beneficiaries to control costs. Instead, we contend that Medicare can control expenditures the way most other industrial democracies do: through budgetary caps and centralized regulation of provider payments.

Suggested Citation

Marmor, Theodore R. and Oberlander, Jonathan, Rethinking Medicare Reform. Health Affairs, Vol. 17, No. 1, Jan/Feb 1998. Available at SSRN: https://ssrn.com/abstract=141529

Theodore Richard Marmor (Contact Author)

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-3238 (Phone)

Jonathan Oberlander

University of North Carolina (UNC) at Chapel Hill - Department of Social Medicine ( email )

Medical School Wing D, CB #7240
Chapel Hill, NC 27599
919-962-1136 (after 5PM 962-11 (Phone)
919-966-7499 (Fax)

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