Medicare out-of-pocket costs: can private savings incentives solve the problem?
- Collection:
- Health Policy and Services Research
- Contributor(s):
- Fishman, Eliot. Tamang, Suzanne. Shea, Dennis. Commonwealth Fund.
- Publication:
- [New York, N.Y.] : Commonwealth Fund, [2008]
- Language(s):
- English
- Format:
- Text
- Subject(s):
- Cost Sharing -- economics Medicare -- economics Taxes Health Care Costs Income Medicare -- organization & administration Private Sector Retirement -- economics Humans United States
- Genre(s):
- Technical Report
- Abstract:
- Medicare's benefit structure leaves beneficiaries with significant out-of-pocket costs, particularly if they lack supplemental coverage; such costs disproportionately affect low-income, old, and chronically ill beneficiaries. Supplemental coverage can offset Medicare's cost-sharing but is itself a significant expense. This report analyzes the extent to which incentives for private saving could relieve the burden of post-retirement health care costs. Focusing on low-income participants as part of a broader analysis of families of varying income levels, the analysis projects the savings potential for individuals if they could save a modest percentage of their income tax free and receive a rate of return equivalent to that in a basket of U.S. Treasury bonds. The authors conclude that enhanced savings offer only a partial solution to this problem for low-income seniors, and that a strong fiscal case can be made for partly or totally limiting such tax incentives to low-income and lower-middle-income individuals.
- Copyright:
- Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY license. (More information)
- Illustrations:
- Illustrations
- NLM Unique ID:
- 101470219 (See catalog record)
- Permanent Link:
- http://resource.nlm.nih.gov/101470219