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The Emerging Role of Group Medicare Private Fee-for-Service Plans

This issue brief examines the recent boom in Medicare Advantage enrollment attributable to employers contracting with Private Fee-for-Service (PFFS) plans to cover their Medicare-eligible retirees. Between 2006 and 2008, the number of Medicare beneficiaries enrolled in Medicare Advantage group plans nearly doubled from 900,000 to nearly 1.7 million as of June 2008; most of this growth is attributable to contracts between employers and PFFS plans.

The issue brief, prepared for the Foundation by Avalere Health, highlights changes in regulation, statute and the marketplace that appear to be influencing employers' interest in PFFS plans as an option for their retirees, drawing on interviews with employers, benefit consultants, insurers and consumer representatives.

Issue Brief (.pdf)