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HRD-76-129 1 (1977-02-24)

handle is hein.gao/gaobaabwt0001 and id is 1 raw text is: DOCUMENT RESUME 00505 - CA07514001 Potential Effects of National Health Insurance Proposals on Medicare Beneficiaties. HRD-76-129; B-164031(4). February 24, __ 1977. 59 pp. _ Report to the Congress; by Elmer b. Staats, Comptroller General--- Issue Area: Health Programs: Reimbursement Policies and Utilization Controls (1208); Health Programs: Impact of _ National Health Insurance (1209). Contact: Human Resources Div. budget Function: National Defense: De)jartment of Defense - Military (except procuremant & contracts# (051). Organization Concerned: Department of Health, Education, and __ welfare, Corgresional P elevance: Hoase Committee on Ways and Bears; Seniae Comwittee on Finance; Congress. Authority. Coaprehensive Health Insurance Act of 1974; S. 2970 (93rd cong j; h.P. 12684 (94th Cong.). Comprehensive tf.*icnal Health Insurance Act of 1974; S. 3266 (93rd Cong.); H.R. 13870 (93rd Cong.). Catastrophic Health Insurance and Medical Assistance Reform Act; S. 2513 (93rd Cong.). Social security Amendments of 1965. Social Security hmendments of If72. h. Rept. 94-12082. gdicare was established to protect tta elderly against the cost3 of inpatient hospital care. The propcsed Ccaprchensivo. Health Insurance ct of 1974 (CHIP) would combine parta A and 8 of Hedicare and would modify Sedicarels cost-sharing formulas and livit beneficiaries0 liability based on income. The proposed National Health Insurance Act of 1974 (Kennedy-Hills proposal) would leave the Medicare cost-sharing formula essentially the same but would limit the beneficiaries* liability based on i.ncome. The proposed Catastrophic Health Insurance and redical Assistance Reform Act (Long-Ribicoff proposal) would, essentially, supplement Medicare's existing benefits by covering catastrophic illnesses. Both the CHIP and the Kennedy-Bills proposal would use credit cards (program payments would be made in full to participating providers, such as hospitals, on behalf of beneficiaries). Findings/conclusions: Of the varicus proposals, eliminating the limits on inpatient hospital days and substituting a flat, daily coinsurance charge for the existing inpatient deduc-cible and coinsurance seen most attractive, since they would siaplify administration. Introducing a modifiei benefit structure based on individual or family income would greatly increase costs, particularly if strictly enforced and monitored to maint-in the integrity of the system, and could have onl a limited impact on total program benefits. Intro!ducing a credit uard system would simplify administration and reduce costs for provi.4..rs, but would increase administrative costs to the Government. Recommendations: The Social Security Administration should test the feasibility and

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