CBO: Premium Support Works
A major report by the Congressional Budget Office (CBO) confirms that Medicare premium support (a defined-contribution system of health-plan financing) would make the financially troubled federal program more fiscally sustainable. The CBO finds that, in a new competitive system of health plans, private plans can offer the same benefit and services as traditional Medicare fee-for-service (FFS) plans — at a lower cost to taxpayers. Moreover, depending on the competitive bids among plans and the payment structure, the report also reveals that competition can drive lower beneficiaries’ premiums and out-of-pocket expenses would decline. (Heritage Foundation)
I don’t know much about the specifics of the difference in programs. But economics 101 tells us that a private enterprise operating in a competitive market will outperform companies that operate in a monopoly (here if a government is the sole provider, it acts as a monopoly). It is clear having private plans would be better, but would it be in the best interest of the insurance companies to do so?
“Of the two options, the CBO says that the second would exert greater competitive pressure and therefore would result in greater savings.”
Also an example of Econ 101.
Which most congressmen have not taken
“the report also reveals that competition can drive lower beneficiaries’ premiums and out-of-pocket expenses would decline”
Isn’t this just further proof that principles that promote competition are likely much more efficient and better for consumers. Improving competition works for everything.
We can hope so
Healthcare would be so simple without government’s intervention. There must be a brilliant idea behind it that I cannot comprehend.
Anything improves without the middleman. Once the government gets their greedy hands onto something, they don’t let go easily.
“The CBO finds that, in a new competitive system of health plans, private plans can offer the same benefit and services as traditional Medicare fee-for-service (FFS) plans — at a lower cost to taxpayers.”
So where are the calls to implement this policy change to Medicare?
Lost by the wayside
Hopefully as they garner more attention they will be brought up.
The CBO sound like an educated bunch, they know what they are talking about and are not afraid of stating the positives and the negatives of legislation. Why couldn’t our representatives work like them? Accurate, informative, assertive…
and unbiased…
“…the CBO has shown that Medicare premium support can yield serious savings while expanding seniors’ options.”
Which is all that you can really ask of out Medicare reform. Saving money and expanding options should be priority number one.
Why does the United States have a Congressional Budget Office, if congress never pays attention to its recommendation and assessments?
“Private ____ can offer the same benefit and services as traditional [government] plans — at a lower cost to taxpayers.”
Insert just about anything in that first blank and that sentence will work.