National
Bipartisan Commission on the Future of Medicare GO TO: Medicare HOME
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MEMORANDUM
Attached is the estimate from HCFA's Office of the Actuary on the premium support proposal I put forward at the Commission meeting last month. I am pleased that HCFA's actuaries have joined Commission staff in confirming that a premium support model would result in savings to the Medicare program. The HCFA actuaries have produced estimates under two alternative versions: one assuming a core, standardized benefit package with no more than 10 percent variation and a second option assuming a benefit package with no variation at all. Under the first scenario, HCFA estimates that my proposal would save $347 billion through 2009 and produce savings equivalent to 11.2 percent of what Medicare expenditures otherwise would have been through 2030. If no variation were allowed in the benefit package, the proposal would save $372 billion through 2009 and produce savings equivalent to 11.9 percent of what Medicare expenditures otherwise would have been through 2030. Please note that savings from the income-related premium would be used to pay for enhanced low-income protections, thereby reducing total savings. I look forward to discussing this and other premium support analyses at tomorrow's meeting. Package 1--Draft Medicare legislative package introduced by Senator Breaux at January 26 Commission meeting1
Estimated costs (+) or savings (-) under two alternative versions of
Medicare legislative package introduced by Senator Breaux at January 22 Commission Meeting --Option (1): Limited variation in benefit package--
Estimated costs (+) or savings (-) under two alternative versions of
Medicare legislative package introduced by Senator Breaux at January 22 Commission Meeting --Option (2): No variation in benefit package--
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