Addressing Disparities in Premiums for Low-Income Medicare Beneficiaries: A Brookings Institution White Paper

Brookings Institution Visiting Fellow Wendell Primus has recently published a white paper with Research Assistant Parish Rich Bingham, titled “Reducing premiums for low-income Medicare beneficiaries.” The research conducted by Primus and Bingham highlights a significant disparity in premiums paid by low-income Medicare beneficiaries compared to Affordable Care Act beneficiaries with the same income.

According to the findings, ACA plan members whose income is no more than 150% of the federal poverty level pay zero in premiums, while elderly single individuals with the same income are paying $2,500 in premiums annually, and couples are paying over $5,000 a year. This stark contrast in premium costs between the two groups has raised concerns about equity and affordability in healthcare.

Primus proposes a solution to reduce premiums for more than 26 million low-income Medicare beneficiaries, while increasing premiums for the 9% who are the wealthiest Medicare beneficiaries. The plan, estimated to cost $40-$45 billion per year, aims to address the disparity in premium costs and ensure greater financial stability for those in need.

The proposal would require legislative action to implement, but Primus is confident that the significant disparity in premium costs will prompt action in some form. The research sheds light on the challenges faced by low-income Medicare beneficiaries and the need for policy changes to improve affordability and access to healthcare.

For more information on this topic and Primus’ proposed solution, listen to his conversation with Susan Morse, executive editor of Healthcare Finance News.