US Democrat Group's Medicare Reform Plan

The US Progressive Policy Institute, a centrist Democrat think tank, says its Medicare reform plan would save $100 billion over seven years and be more market-based that the GOP version.

The PPI has released a report from health consultants Lewin-VHI showing that its proposal would rely less on government price-setting than the 1995-96 Republican "Medicare Plus" plan, and would include stronger incentives for people to leave traditional Medicare for private-sector alternatives such as managed care.

The PPI plan would also use competitive bidding rather than a government fee scale to find how much the federal Medicare program would pay. Those who chose to remain in traditional fee-for-service Medicare would have to pay part of the additional cost. While Medicare has opened some more health maintenance organizations and private-sector choices for the elderly, it has not been on the scale the Republicans have been lobbying for.