In this article, the authors evaluate the cost and utilization effects
of the SELECT implementations in 11 States. In particular they compar
e the before-and-after enrollment experiences of Medicare beneficiarie
s newly enrolled in SELECT plans with the experiences of those newly e
nrolled in traditional medigap plans. Using Medicare claims data for 1
991 through 1994, the authors find that Medicare SELECT increased cost
s in five States, decreased costs in three States, and had no effect i
n three States. Cost increases were generally related to Part B utiliz
ation.