Disenrollment of Medicare beneficiaries from HMOs

Abstract

Abou t 1 4 p e r c ent of the Medicare
population is now enrolled in health
maintenance organizations (HMOs).1
In contrast to most private, employmentbased
policies, Medicare allows beneficiaries
to disenroll from their plan at any time. Unrestricted
disenrollment provides a “safety
valve” for beneficiaries who enroll and then
change their minds or who become dissatisfied
with some aspect of their plan. In the
early years of Medicare’s risk-contracting
program, disenrollment rates were high.2