Part One- How Medicare Might Look in the Future- Premium Support

Part One- How Medicare Might Look in the Future-  Premium Support

06/04/2012  Medicare as we know it is financially unsustainable in this country. It is also extremely political. It is my belief that no matter who wins the Presidential election or which party controls Congress, change in the Medicare system is inevitable. Change is a code word. What we are really talking about is the federal government cutting spending on Medicare, which both political parties agree must occur.  We can only hope that our political leaders in Washington can act like adults, and produce meaningful and effective policy. So, what might some changes look like? First, there is the possibility of some type of Premium Support. Premium Support is partial privatization of Medicare where different private companies will vie for your Medicare coverage. A Medicare recipient will get a defined set of dollars, and she will then go out and purchase Medicare healthcare. The thinking goes that this will put the patient in better charge of her healthcare and stimulate intense competition, which will result in lower cost and improved outcomes. Premium Support already exists-  Part D/Prescriptions, Medicare Advantage Plans, and the highly successful Federal Employees Health Program.

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