Premiums would have risen for the majority of beneficiaries if Medicare had been operating as a premium support program in 2010 because most of them would have been in areas where their current coverage would have cost more than the benchmark plan included in such a system, according to a study released Oct. 15 by the Kaiser Family Foundation.

 

Kaiser found that 59 percent of beneficiaries—or 25 million seniors—would pay a higher premium under a voucher program unless they switched to another, lower-cost plan. On average, beneficiaries in traditional Medicare would pay $60 per month in additional premiums under a premium support system, the study said. The remaining 41 percent would pay the same or less under premium support, Kaiser said.

 

Kaiser said it was not directly analyzing the premium support proposal offered by Republican Vice Presidential nominee Paul Ryan because that would require additional, more detailed policy specifications than are available. Ryan's plan also would not be implemented until 2023, Kaiser said.

 

American Enterprise Institute health economist Joe Antos criticiized the study, saying in an Oct. 16 press release that it was based on flawed assumptions that seniors would not change health plans even if a less expensive option would save them hundreds of dollars a month and that lower health plan costs would increase what Medicare beneficiaries have to pay—but only if they insist on paying more for the same benefits that are offered less expensively elsewhere.