Antos: Flawed Kaiser premium support study

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
  • Joseph Antos is the Wilson H. Taylor Scholar in Health Care and Retirement Policy at the American Enterprise Institute (AEI), where his research focuses on the economics of health policy — including the Affordable Care Act, Medicare, the uninsured, and the overall reform of the health care system and its financing. He also studies the impact of health care expenditures on federal budget policy.

    Before joining AEI, Antos was assistant director for health and human resources at the Congressional Budget Office (CBO). He has also held senior positions in the US Department of Health and Human Services, the Office of Management and Budget, and the President’s Council of Economic Advisers. He recently completed a seven-year term as health adviser to CBO, and two terms as a commissioner of the Maryland Health Services Cost Review Commission. In 2013, he was also named adjunct associate professor of emergency medicine at George Washington University.

    Antos has a Ph.D. and an M.A. in economics from the University of Rochester and a B.A. in mathematics from Cornell University.



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