Actuaries Release Voter Guide on Medicare Reform Model
WASHINGTON, Oct. 9, 2012 /PRNewswire-USNewswire/ -- A premium support model has been advocated by some as a way to bolster the Medicare program's long-term financial solvency. Under premium support proposals, Medicare beneficiaries would receive government funds to use toward paying the premiums of health plans of their choice, with possibly the traditional Medicare program being one of the choices.
The non-partisan American Academy of Actuaries today released a voter guide on premium support reforms to provide objective information on the potential benefits and pitfalls of shifting Medicare to a premium-support model. Whether premium support would encourage insurers to develop more cost-efficient health care models, as advocates contend, or shift additional costs onto seniors, as opponents contend, depends on how the details of the program are developed.The guide highlights the details that matter when determining how a premium support model would affect beneficiaries and Medicare spending. These include:
- How the government contribution is set and how it grows over time.
- Whether the traditional Medicare program is retained as a plan option.
- How the benefit package is defined.
- Whether there is additional financial protection for low-income beneficiaries.
- When the transition to premium support takes place.