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Proposed Medicare Premium Support Models Increase Beneficiary Costs

Shifting Medicare to a premium support model is projected to increase out-of-pocket spending for about 60% of beneficiaries, according an analysis that calculated the changes in costs if a premium support model had been fully implemented during 2010. Assuming current coverage preferences, 53% of people enrolled in traditional Medicare and 88% of people enrolled in a Medicare Advantage plan would have paid more out of pocket than they did in 2010 under the current system. The impact of the premium support model would affect states differently, with higher Medicare premiums projected for more than 90% of Medicare beneficiaries . . .

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