Debunking Medicare Reform Myths

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Debunking Medicare Reform Myths Looking for the facts on premium support? Here’s a summary of the most common arguments against premium support and why they don’t hold up against facts: “Premium support would destroy traditional Medicare.” Under all of the major premium-support proposals, traditional Medicare is still an option for seniors. Seniors would be given a choice between the fee-for-service Medicare of today or private plans. Medicare would be forced to compete with private plans that have the potential to offer greater benefits at a lower cost. “Premium support would ‘privatize’ Medicare.” Medicare is highly privatized already. In a recent paper, Bob Moffit points out that almost all of Medicare is comprised of private agents or institutions that are financed by the public and have to follow public rules. In addition, Medicare Advantage (MA), which currently enrolls 27 percent of all Medicare beneficiaries, is comprised of private health plans that compete against each other, and the Medicare prescription drug benefit is provided through private plans as well. “Premium support would leave Medicare patients at the mercy of rapacious insurance companies.” Moffit writes that “every major premium-support proposal would retain or reinforce insurance rules that prevent ‘cherry picking’ or coverage denials based on health status.” “Premium support would increase beneficiary premiums.” Moffit explains, “A transition from a defined benefit to a defined contribution would not necessarily increase premiums over current projections.” The government contribution toward premiums would be based on competitive bidding among health plans in the market, tying it to real health spending trends. Premium support is the only reform option that will ensure that Medicare is still around for future generations. It also has the added advantage of a long history of bipartisan support. Read the full paper for more myth-busting >> How Obamacare Robs Medicare and Hurts Seniors VIDEO: HHS Mandate “Serious” Threat to Religious Liberty Time for a Serious National Debate About Medicare Reform Ten Ways Obamacare Limits Patient Choice Saving the American Dream: A Blueprint for Putting Patients First   $33.48 Billion IN MEDICAID EXPANSION COSTS TO THE STATES IF THEY ALL CHOSE TO PARTICIPATE  Obamacare burdens state governments that are already struggling to afford the program. Learn More >>     About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute — a think tank — whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400 | heritage.org