MedPAC Calls For Tax On Supplementary Medicare Plans

Law360, New York (June 15, 2012, 3:49 PM EDT) -- The Medicare Payment Advisory Commission recommended Friday that Congress cap patients’ out-of-pocket spending, reduce deductibles and tax supplemental insurance plans in order to discourage the use of private policies blamed for promoting overtreatment.

At issue are Medigap plans that often shield beneficiaries almost entirely from point-of-service fees and are associated with excessive use of medical care. Since the policies can cover expenditures starting with the very first services received under Medicare, large costs are passed along to taxpayers.

MedPAC is proposing to dissuade consumers from buying...
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