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The Medicare Preferred Provider Organization Demonstration: Overview of Design, Characteristics, and Outstanding Issues of Interest

In January 2003, the Centers for Medicare and Medicaid initiated the Preferred Provider Organization Demonstration with the intent of testing alternatives to the payment methods used in the Medicare+Choice program.

This AARP Public Policy Institute Issue Paper by Marsha Gold, Lori Achman and Jim Verdier of Mathematica Policy Research, Inc. provides a detailed description of the demonstration project, with information about the geographic scope of the project; plan sponsors and profiles of participating PPOs; benefits, premiums, and cost sharing; payment methods and risk sharing; and other issues to consider in evaluating the effects of the demonstration. (160 pages)

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