The Role of Private Plans in Medicare
Enrollment in private health plans has grown sharply since the enactment of the Medicare Modernization Act in 2003, which created a Medicare drug benefit to be provided by private plans and created incentives for new private plans to enter the Medicare market. Today, virtually all Medicare beneficiaries--including those living in rural areas--have access to one or more private plans (known as Medicare Advantage plans), such as a Medicare HMO, PPO, special-needs plan or a private…