3.3.2: Medicare Cost-Sharing
Reform Medicare cost-sharing rules. Other Information:
(Saves $10 billion in 2015, $110 billion through 2020) Currently, Medicare beneficiaries must navigate a hodge-podge of premiums,
deductibles, and copays that offer neither spending predictability nor protection from catastrophic financial risk. Because
cost-sharing for most medical services is low, the benefit structure encourages over-utilization of health care. In place
of the current structure, the Commission recommends establishing a single combined annual deductible of $550 for Part A (hospital)
and Part B (medical care), along with 20 percent uniform coinsurance on health spending above the deductible. We would also
provide catastrophic protection for seniors by reducing the coinsurance rate to 5 percent after costs exceed $5,500 and capping
total cost sharing at $7,500.
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