Fix Health Care Policy

Posts Tagged ‘cost savings’

October 2, 2012

Health Care News

Two Liberal Whoppers on Medicare

A debate that has been fought largely over the airwaves is about to go head-to-head. Medicare reform is a huge part of that debate, and the left—bolstered by the media—has been promoting two huge falsehoods on the issue.

Several proposals from conservatives and liberals for Medicare reform, including The Heritage Foundation’s Saving the American Dream proposal, are based on a financing model called “premium support.” What that means: Medicare has a premium cost, just as other health insurance does. When the government makes a contribution (sometimes referred to as a “defined contribution”) toward paying your premium, that is called premium support. The difference with reform is that the government would no longer dictate to seniors which Medicare plan they would have to use. The government would still support the premium, but the seniors would have the option to choose from a variety of plans tailored to their needs, including traditional Medicare.

The concept is already working in several areas of Medicare, including Medicare Advantage plans and the prescription drug benefit program. Program savings in the drug program have been spectacular, and in Medicare Advantage and the drug program premiums have been stable. Patient satisfaction is very high in both programs.

But two whoppers are still circulating—let’s put them to rest once and for all.

Read the rest on The Foundry…

Tags: cost savings, greater competition, Medicare, Medicare Advantage, myths, premium support, prescription drug benefit program, whoppers