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Medicare Reform

Structuring Health Care Benefits: A Comparison of Medicare and the FEHBP

Research Report

May 2000


This issue paper identifies significant differences between Medicare's current structure and the structure of the Federal Employee Health Benefits Program, a premium support system, with the focus specifically on differences related to health care benefits as an entitlement. Both original Medicare and Medicare+Choice are examined in the comparison. The analysis highlights for policymakers that certain structural elements of the Medicare program as a whole (e.g., the specificity of covered benefits and cost-sharing requirements) play important roles in preserving the value of Medicare benefits. The issue paper concludes that any premium support proposal that weakens the structure of original Medicare would have serious ramifications for current and future Medicare beneficiaries. (26 pages)

Pub ID: 2000-05