The privatization of the Medicaid long-term care programs has been implemented largely through state managed care contracts with insurance companies to administer Medicaid LTC funds. Medicare privatization has been similarly implemented through contracts with insurance companies in the Medicare Advantage (MA) program.

What does it mean to privatize Medicare?

In a privatized Medicare plan, the private insurance company controls funds that Medicare sets aside for the patient. The privatized Medicare plan dispenses care and reimbursement according to rules it creates, keeping as profit whatever the patient does not spend on care.

Who is Medicare through?

The Centers for Medicare & Medicaid Services (CMS) is the federal agency that runs Medicare. The program is funded in part by Social Security and Medicare taxes you pay on your income, in part through premiums that people with Medicare pay, and in part by the federal budget.