Reconciling Medicare+Choice payments and fee-for-service spending (B)

The Secretary should study variation in spending under the traditional Medicare program to determine how much is caused by differences in input prices and health risk and how much is caused by differences in provider practice patterns, the availability of providers and services, and beneficiary preferences. He should report to the Congress and make recommendations on whether and how the differences in use and preference should be incorporated into Medicare fee-for-service payments and Medicare+Choice payment rates.