Can Medicare Beneficiaries Make Informed Choices?

Abstract

This DataWatch assesses Medicare beneficiaries' understanding of the differences between their managed care and fee-for-service Medicare options. A telephone survey was used to evaluate knowledge levels among 1,673 beneficiaries residing in five Medicare markets with high managed care penetration. Half of the sample were enrolled in health maintenance organizations (HMOs) and half in the traditional Medicare program. The findings show that 30 percent of beneficiaries know almost nothing about HMOs; only 11 percent have adequate knowledge to make an informed choice; and HMO enrollees have significantly lower knowledge levels of the differences between the two delivery systems. These findings have implications for educating beneficiaries about their expanded choices.