Antos: Flawed Kaiser premium support study
Joseph Antos
October 16, 2012

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In case you missed it, American Enterprise Institute (AEI) health economist and Medicare expert Joseph (Joe) Antos exposes the flawed reasoning in a new report by the Kaiser Family Foundation.

Antos explains that the study’s claim that seniors would pay more in a premium support system is based on two flawed assumptions:

  • Seniors won't adjust? To reach their conclusion, the authors of the Kaiser study assume that no beneficiary would change health plans even if a less expensive option would save them hundreds of dollars a month.
  • Seniors want to overpay? 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.

Read Joe’s full analysis here.

"It is clear that premium support will create even larger incentives to cut waste and improve cost-efficiency. That could result in nearly all plans offering lower bids than we see today, and the differences could be substantial. That means savings for the Mom’s of America, and savings for their children who are stuck with the tax bill."

Joe Antos is a former assistant director for Health and Human Resources at the Congressional Budget Office (CBO), and is currently a commissioner of the Maryland Health Services Cost Review Commission and a health adviser to CBO. He is available for interviews and can be reached at jantos@aei.org.

For media requests please contact MediaServices@aei.org or 202.862.5829

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About the Author

 

Joseph
Antos

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    Mr. Antos's research focuses on the economics of health policy—including Medicare and broader health system reform, health care financing, health insurance regulation, and the uninsured—and federal budget policy. He has written and spoken extensively on the Medicare drug benefit and has led a team of experienced independent actuaries and cost estimators in a study to evaluate various proposals to extend health coverage to the uninsured. His work on the country’s budget crisis includes a detailed plan to achieve fiscal stability and economic growth developed in conjunction with AEI colleagues.  


    Joseph Antos is also a health adviser to the Congressional Budget Office and recently completed two terms as a commissioner of the Maryland Health Services Cost Review Commission.  Before joining AEI, Mr. Antos was Assistant Director for Health and Human Resources at the Congressional Budget Office and held senior positions in the U.S.Department of Health and Human Services, the Office of Management and Budget, and the President’s Council of economic Advisers.


     



    Watch Mr. Antos in an interview with Bill Erwin of the Alliance for Health Reform on "Will Health Reform Reduce the Federal Deficit?"


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  • Phone: 202-862-5938
    Email: jantos@aei.org

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