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The problem with Kaiser’s premium support study? Seniors are smarter than that—and so are health plans

POSTED BY Galen Institute on October 16, 2012.

Going to the supermarket with my mother was always a test of patience. She would carefully examine the produce, looking for defects that only she could see to make sure that she found the best head of lettuce or bunch of carrots. If they were too expensive, she put them back.

She was a careful shopper when it came to items that cost a few dollars. It is not very likely that she would be less careful if the price was much higher. Yet that is what the latest study of Medicare reform seems to imply.

The Kaiser Family Foundation published a report this week showing that 59 percent of Medicare beneficiaries—25 million people—would pay more to remain in their current health plan if a premium support system was fully implemented. This matters because premium support is the reform advanced by presidential candidate Mitt Romney and his running mate Paul Ryan, and we are three weeks from the election. The headline suggests that Mom would stick with her expensive plan even though plans are available that offer the same benefits for much less.

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