What’s the problem with making those with more money pay more? One Medicare expert told Campaign Desk last fall that the income-related premiums “could overtime undermine the support for the program.” Here’s how. Making those with more income pay more seems reasonable, but it’s possible those with higher incomes will eventually prefer to leave Medicare and opt for private insurance on their own, which might be cheaper and cover more. That could break up Medicare’s risk pool, with its robust mix of healthy and sick people, which makes the system work. That, in turn, could transform Medicare into a means-tested welfare program rather than social insurance. Those left in Medicare are likely to be in poor health and will find themselves paying a growing share of their medical costs as Medicare becomes even more expensive.
Adams shows it’s possible to produce a clear and interesting story that millions of seniors and those about to go on Medicare want to read.
For more from Trudy Lieberman on Social Security and entitlement reform, click here.