A recent study by researchers at Stanford University and Harvard University has shown that if a private health plan manages to negotiate lower prices with health care providers, they may make up the difference by providing health care to Medicare beneficiaries. The study examined data from more than 300 geographic regions in the U.S., including Medicare spending on inpatient and outpatient care as well as prescription drugs for fee-for-service beneficiaries. The researchers found that a 10% lower private price for health care services is associated with a 3% increase in Medicare spending per member, per year, and 4.3% more specialist visits.
