Proposals under consideration by Congress that would significantly increase cost-sharing for Medicare beneficiaries may result in higher costs to the Medicare program long-term and worsening health of beneficiaries due to avoidance of needed services, according to a paper on Medicare Supplement Insurance First Dollar Coverage and Cost Sharing adopted by the NAIC.
Cost saving are based on unknown assumptions, the paper concluded, after an actuarial review.
The paper was authored by the Medigap PPACA Subgroup of the NAIC’s Senior Issues Task Force.
The Subgroup solicited actuarial review of the Congressional and the underlying Congressional Budget Office (CBO) proposals.
Additional hospital expenses due to cutting off or decreasing some services as well the impact of asking for more out-of-pocket costs should go into the analysis, among other things, the paper suggests.