The fear that managed care is making inroads into Medicare has struck
a note of near panic in the minds of many American physicians. Making
more options available to seniors, including many types of managed car
e plans, and reforming the way Medicare makes payments to such plans,
however, may be moro attractive to physicians than the continued relia
nce on the direct control system that has been traditionally associate
d with Medicare. This article discusses the changing private sector, t
he present structure of Medicare, how plans are paid, what physicians
tan expect in the near-term, and future fiscal pressures on Medicare.