Medicare out-of-pocket costs: can private savings incentives solve the problem?

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
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