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Related Experiment Videos

Means-testing in Medicare.

Mark V Pauly1

  • 1Health Care Systems Department, Wharton School, University of Pennsylvania, Philadelphia, USA. pauly@wharton.upenn.edu

Health Affairs (Project Hope)
|December 14, 2004
PubMed
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The Medicare Prescription Drug, Improvement, and Modernization Act (MMA) means-tests premiums and benefits. Additional means-testing could improve Medicare

Area of Science:

  • Health economics
  • Public policy
  • Gerontology

Background:

  • The Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003 introduced means-testing.
  • The MMA established means-testing for Part B premiums and offered enhanced drug benefits for low-income beneficiaries.

Purpose of the Study:

  • To evaluate the potential financial benefits of additional means-testing within Medicare.
  • To propose a strategy for financing new, quality-improving medical technologies.

Main Methods:

  • Analysis of the Medicare Prescription Drug, Improvement, and Modernization Act (MMA).
  • Economic modeling of proposed means-testing strategies.

Main Results:

  • The MMA's means-testing affects Part B premiums and prescription drug benefits.

Related Experiment Videos

  • Additional means-testing presents an opportunity to improve Medicare's financial stability.

    • Conclusions:

    • Implementing further means-testing could enhance Medicare's financial health.
    • A proposed strategy involves higher-income beneficiaries prefunding new technologies before retirement.