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Diane Publishing Books
Designing a Premium Support System for Medicare
Bruce Vavrichek (ed); James Baumgardner (ed); Donald B. Marron (pf)
Driven by rising health care costs & an aging pop., fed. spending on the Medicare program will exert substantial pressures on the fed. budget over the coming decades. One approach for restraining Medicare spending would restructure the competition between private health plans & the traditional Medicare program by converting Medicare to a “premium support” system (PSS). Under such a system, the fed. gov’t. would contribute an amount that beneficiaries could use to purchase medicare coverage by enrolling in the traditional program or in a private plan. This study examines the key decisions to be confronted in designing a PSS for Medicare & the implications of alternative design choices for fed. spending & beneficiaries’ premiums. Charts & tables.
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