2006 Medicare Advantage Benefits and Premiums

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 substantially changed the Medicare program by adding a prescription drug benefit and expanding the role of private health plans. This paper analyzes the benefits and premiums of Medicare Advantage plans in 2006, including trends in relation to prior years, differences by plan type, and the level of financial protection plans of diverse types provide beneficiaries, particularly those needing substantial care. A special section examines the Special Needs Plans available for beneficiaries who are institutionalized, dually eligible for Medicare and Medicaid, or have multiple chronic conditions. In their concluding observations, the authors address policy and operational challenges that emerge from their analysis.