Medicare: Issues Concerning the HealthChoice Demonstration Project
GENERAL ACCOUNTING OFFICE WASHINGTON DC HUMAN RESOURCES DIV
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This report reviews a number of issues regarding Medicare and health maintenance organizations HMOS. One of these issues concerned a Medicare demonstration project involving HealthChoice, Inc., a nonprofit company under contract with Medicare. The Health Care Financing Administration HCFA, which administers Medicare for the Department of Health and Human Services HHS, awarded HealthChoice contracts for two demonstration projects, effective September 1982 and September 1985. The projects were intended to 1 test the effect of educating Medicare beneficiaries on the HMO option by giving them comparative information on participating HMOS in their community and 2 ascertain the feasibility of using a broker as a marketing agent. As its funding authority, HCFA cited section 402a of the Social Security Amendments of 1967, which allows for experiments with alternative methods of paying for Medicare services.
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