Table 1.
Table Comparison of the 5 lowest plan bids to traditional Medicare costs, 2006–2009*
| Year | Average Traditional Medicare costs ($ per month) | Average plan bid (% of traditional Medicare costs)
|
||||
|---|---|---|---|---|---|---|
| Lowest bid plan | 2nd-lowest plan† | 3rd-lowest plan | 4th-lowest plan | 5th-lowest plan | ||
| 2009 | $717 | 87% | 91% | 94% | 95% | 96% |
| 2008 | $721 | 82% | 87% | 89% | 91% | 91% |
| 2007 | $705 | 84% | 89% | 92% | 94% | 95% |
| 2006 | $699 | 82% | 88% | 90% | 93% | 94% |
*
We used Medicare Advantage plan payment data and actual fee-for-service Medicare spending data from the Centers for Medicare and Medicaid Services.8 All costs are adjusted to 2009 U.S. dollars.
†
Under the Ryan-Wyden plan, the second-lowest bidding private health plan in a county (or the county’s Traditional Medicare costs, whichever is lower) serves as the benchmark. All plans bidding above the benchmark must charge beneficiaries a premium, equal to the difference between the plan’s bid and the benchmark. The lowest bidding private plan, in counties where Traditional Medicare is not the lowest bidder, would offer a rebate to plan beneficiaries.