Sterling provides very few additional benefits beyond the Medicare defined benefit package, but may reduce cost sharing for some beneficiaries, depending on the exact services used. Another goal of payment reform was to decrease the variation in payment rates and benefits. This has occurred. In 1997, the highest payment rate was 3 times the lowest rate. Recall the difference in benefits available in Miami and Minneapolis in 1997.
Differences persist today.
Several plans in Miami charge enrollees no additional premium and include full coverage of prescription drugs, both generic and brand name, for drugs on the plan's formulary. Only one HMO offers any prescription drug coverage. In both cities, the HMO plans reduce cost-sharing and provide additional benefits, such as physical exams, eye care, and dental care. Finally, payment reform was intended to reduce volatility in payments over time. This concludes my testimony.