NU Online News Service, May 21, 6:15 p.m. – AARP, Washington, puts more emphasis on government-sponsored health finance programs in its second annual report on U.S. residents between the ages of 50 and 65.
Last year, in the first report, the authors suggested that “options ranging from Medicaid expansions to tax credits coupled with private health insurance market reforms bear serious examination.”
This year, the authors argue that middle-aged U.S. residents are a bad risk for private insurers because a large percentage run up big medical bills.
“The implication is that traditional insurance models, which rest on the assumption that only a small proportion of the insured will need services in a particular year, are simply not able to provide affordable coverage to older age groups,” the authors conclude.
The authors also question how much private long-term care insurers can do to solve the United States’ long-term care finance crisis.