The idea of turning Medicare into a "premium support" program, or a voucher-based system, has been floating around for a long time now, and a study from the Kaiser Family Foundation (pdf) found that a premium support design would actually raise premiums for most Medicare beneficiaries.
Kaiser's analysis looked at the potential implications of a premium support Medicare system and how it would affect Medicare premiums. It also defined a premium support approach as one where the federal government contributes a fixed amount for each Medicare beneficiary that would go toward the premium of a health insurance plan compared with the current system where Medicare beneficiaries are entitled to a determined set of benefits and the government covering the costs of those services.
The study found that a majority of all Medicare beneficiaries, 59 percent total, would most likely have to pay higher Medicare premiums than they do under the current Medicare system if they wanted the same plan and benefits. The reason? Those beneficiaries would be in health plans that cost more than a benchmark plan in their area, which would have fewer benefits. On average, enrollees in the traditional Medicare program would pay $60 per month more in additional premiums, while enrollees in private plans would pay roughly $87 per month more.
While GOP presidential candidate Mitt Romney and vice presidential candidate Paul Ryan (R-Wis.) have proposed a similar plan, Kaiser said its report is not an analysis of their particular proposal because "such an analysis would require additional, more detailed policy specifications than are available."
Kaiser's analysis looked at the potential implications of a premium support Medicare system and how it would affect Medicare premiums. It also defined a premium support approach as one where the federal government contributes a fixed amount for each Medicare beneficiary that would go toward the premium of a health insurance plan compared with the current system where Medicare beneficiaries are entitled to a determined set of benefits and the government covering the costs of those services.
The study found that a majority of all Medicare beneficiaries, 59 percent total, would most likely have to pay higher Medicare premiums than they do under the current Medicare system if they wanted the same plan and benefits. The reason? Those beneficiaries would be in health plans that cost more than a benchmark plan in their area, which would have fewer benefits. On average, enrollees in the traditional Medicare program would pay $60 per month more in additional premiums, while enrollees in private plans would pay roughly $87 per month more.
While GOP presidential candidate Mitt Romney and vice presidential candidate Paul Ryan (R-Wis.) have proposed a similar plan, Kaiser said its report is not an analysis of their particular proposal because "such an analysis would require additional, more detailed policy specifications than are available."
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