Premium Support and the Impact on Medicare Beneficiaries AARP Public Policy Institute

Premium Support and the Impact on Medicare Beneficiaries

Full Report

(PDF) Under a premium support system, the federal government would replace Medicare beneficiaries’ guaranteed benefit package with a fixed dollar amount or “defined contribution” that beneficiaries would apply toward their health care coverage. This fact sheet describes the likely impact on Medicare beneficiaries of moving to a premium support system, also known as a defined contribution or voucher system. Premium support could end the promise of a guaranteed set of Medicare benefits Beneficiaries in traditional Medicare could pay more Premium support could shift more costs to beneficiaries over time Most Medicare beneficiaries cannot afford to pay more for their health care Premium support could lead to reduced access and higher risk of catastrophic out-of-pocket medical expenses for Medicare beneficiaries with lower income
Premium support assumes that beneficiaries are willing and able to make complex health care coverage decisions

Search PPI

Find the public policy institute content you are looking for by entering in search terms below. News Alerts Sign up for alerts on the latest research, events and videos on policy issues. Subscribe

A State Scorecard on Long-Term Services and Supports for Older Adults, People with Physical Disabilities, and Family Caregivers Aging Demographics

One in Three Americans is Now 50 or Older

By 2030, one out of every five people in the United State will be 65-plus. Will your community be ready? Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.