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Premium Support Proposals: Key Elements and a Comparison
Posted By Alyene Senger On April 16, 2012 @ 4:30 pm In Obamacare | Comments Disabled
A new poll by Reason-Rupe  shows that Americans support the structural reform of a premium support model for Medicare.
The current Medicare program has made $38 trillion of unfunded promises to seniors over the next 75 years, and the Part A trust fund is predicted  to be bankrupt as soon as 2024. The gravity of Medicare’s fiscal mess makes reform inevitable.
With premium support, the government provides a contribution toward the cost of a health plan of the beneficiary’s choosing. Reason states , “For people not yet in the program and under the age of 55 right now, 65 percent of Americans favor changing Medicare into a program that would give recipients a credit that could be used to purchase private health insurance.”
Premium support proposals have been gaining popularity, even across party lines. There are now five major plans that include premium support for Medicare: (1) The Heritage Foundation’s Saving the American Dream , (2) the fiscal year 2013 House budget resolution (i.e., the Ryan proposal), (3) the Burr–Coburn plan, (4) the Wyden–Ryan plan, and (5) the Domenici–Rivlin proposal.
In a new paper , Heritage expert Bob Moffit explains that the five major premium support plans may differ in detail, but they all include certain elements that increase consumer choice and competition:
Moffit then provides a thorough comparison of each premium support plan, highlighting their commonalities and explaining their differences.
To read Moffit’s Saving the American Dream: Comparing Medicare Reform Plans, click here .
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2012/04/16/premium-support-proposals-key-elements-and-a-comparison/
URLs in this post:
 new poll by Reason-Rupe: http://reason.com/assets/db/13327241811317.pdf
 predicted: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/downloads/tr2011.pdf
 Reason states: http://reason.com/poll/2012/03/26/reason-rupe-health-care-mandate-poll
 Saving the American Dream: http://www.heritage.org/research/reports/2011/05/saving-the-american-dream-the-heritage-plan-to-fix-the-debt-cut-spending-and-restore-prosperity
 In a new paper: http://thf_media.s3.amazonaws.com/2012/pdf/bg2675.pdf
 Image: http://blog.heritage.org/wp-content/uploads/medicarereform.gif
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