Competitive Bidding in Medicare: Who Benefits from Competition?

OBJECTIVES: To conduct the first empirical study of competitive bidding in Medicare. STUDY DESIGN AND METHODS: We analyzed 2006-2010 Medicare Advantage data from the Centers for Medicare and Medicaid Services using longitudinal models adjusted for market and plan characteristics. RESULTS: A $1 increase in Medicare's payment to health maintenance organization (HMO) plans led to a $0.49 (P