Spurring Enrollment In Medicare Savings Programs Through A Substitute For The Asset Test Focused On Investment Income

Fewer than one-third of eligible Medicare beneficiaries enroll in Medicare savings programs, which pay premiums and, in some cases, eliminate out-of-pocket cost sharing for poor and near-poor enrollees. Many beneficiaries don't participate in savings programs because they must complete a cumber...

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Bibliographic Details
Published in:Health Affairs 2012-02, Vol.31 (2), p.367-375
Main Authors: Dorn, Stan, Shang, Baoping
Format: Article
Language:English
Subjects:
Administrative expenses
Beneficiaries
Children & youth
Cost control
Cost reduction
Government programs
Indigent care
Insurance policies
Investment income
Investments
Low income groups
Medicaid
Medicare
Participation
Patient Protection & Affordable Care Act 2010-US
Poverty
Savings accounts
Social security
Studies
Subsidies
Treasury bills
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Summary:Fewer than one-third of eligible Medicare beneficiaries enroll in Medicare savings programs, which pay premiums and, in some cases, eliminate out-of-pocket cost sharing for poor and near-poor enrollees. Many beneficiaries don't participate in savings programs because they must complete a cumbersome application process, including a burdensome asset test. We demonstrate that a streamlined alternative to the asset test-allowing seniors to qualify for Medicare savings programs by providing evidence of limited assets or showing a lack of investment income-would permit 78 percent of currently eligible seniors to bypass the asset test entirely. This simplified approach would increase the number of beneficiaries who qualify for Medicare savings programs from the current 3.6 million seniors to 4.6 million. Such an alternative would keep benefits targeted to people with low assets, eliminate costly administrative expenses and obstacles to enrollment associated with the asset test, and avoid the much larger influx of seniors that would occur if the asset test were eliminated entirely. [PUBLICATION ABSTRACT]
ISSN:0278-2715
1544-5208
DOI:10.1377/hlthaff.2011.0443