Effect of Medicare Advantage Payments on Dually EligibleMedicare Beneficiaries

This study estimates the effect of MedicareAdvantage (MA) payments and StateMedicaid policies on the choice by Medicaideligible Medicare beneficiaries to either joina MA plan, remain in the fee-for-service(FFS) and enroll in Medicaid (duallyenrolled), or remain in FFS Medicare with-out joining Medicaid. Individual planchoice was modeled using a multinomiallogit. The sample includes Medicaid-eligibleMedicare beneficiaries (including specifiedlow income Medicare beneficiaries [SLMBs]and qualified Medicare beneficiaries[QMBs]) drawn from the 2000 MedicareCurrent Beneficiary Survey (MCBS). Wefind a $10 increase in monthly MA paymentreduces the probability of dual enrollment byfour percentage points, and FFS Medicareenrollment by 11 percentage points.