"Markets Without Magic: How Competition Might Save Medicare" by Mark V. Pauly

In Markets Without Magic: How Competition Might Save Medicare, Mark V. Pauly argues that unavoidable limits on Medicare financing can best be imposed through market-based choices rather than government direction. Policymakers face a fundamental challenge: how to preserve Medicare’s ability to provide its beneficiaries with financial protection and access to effective medical care while securing the advantages of competition.





Pauly argues that a voucher system could provide full coverage for the poor, ensure that all seniors have access to a minimum level of coverage, and empower consumers to make decisions about their health care. Converting Medicare to vouchers would create a neutral Medicare market, set realistic limits on the growth in spending, promote efficiency, and give seniors the freedom to choose the plan most suitable for them at the quality level they prefer.

In the short run, bringing competition to Medicare will save money for beneficiaries and improve the quality of health care; in the long run, it may save Medicare.

Contents
INTRODUCTION
1. A VOUCHER BY ANY OTHER NAME
2. WHAT CAN GO RIGHT, AND WHAT CAN GO WRONG?
3. HOW MANY PLANS?
4. WHAT KIND OF COMPETITION?
5. PAINFUL BUT UNAVOIDABLE ADJUSTMENT
6. MARKETS WITHOUT MAGIC
CONCLUSION
NOTES
REFERENCES
ABOUT THE AUTHOR