Medicare vs. FEHBP

I read in the BNA Health Care Policy Report that Rep. Pete Stark (D Calif), the Chairman of the Health Subcommittee of the House Ways and Means Committee, predicts that comprehensive health care reform will be enacted in 2010. Last week, reported on a Berkley School of Law Briefing Paper arguing that Medicare is a better model for health care reform than FEHBP because it “controls costs better than any of its competitors.” As I have pointed out, Medicare controls costs by statutory price controls that shift costs onto private sector plans. Robert Moffitt of the Heritage Foundation rode to the FEHBP’s defense today in a cogent background paper.