This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Beyond The Candidate Debates: Details Matter For Medicare Premium Support Reforms

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.

(Logo: http://photos.prnewswire.com/prnh/20100322/AAALOGO

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.

"Without such specifics, it makes it difficult to determine how beneficiaries would fare under premium support and whether specific proposals could or would slow the growing costs of Medicare," said Cori Uccello, Senior Health Fellow at the American Academy of Actuaries. "Our aim is to highlight the possible implications of premium support and how the details, if and when they are provided, would affect Medicare so that voters and elected officials can make informed decisions."

Medicare faces long-term financing issues, and, while the Affordable Care Act contains several provisions that improve the financial viability of Medicare, additional steps are needed to ensure the program's long-term solvency and sustainability. The American Academy of Actuaries is encouraged that politicians and voters have focused on Medicare during this election and hopes these discussions can lead to action next year to put Medicare on firmer financial footing.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs