Should-Read: Richard Mayhew: The Core of the Fight

Should-Read: Richard Mayhew: The Core of the Fight: “Actuarial value and subsidy level is the core element of the coming fight on Medicare…

…The delivery mechanism through which that value is transferred is window dressing. Andrew Sprung…. ‘What precisely is the Medicare guarantee?… For 95% of seniors, the federal government will pay about 85% of the premiums for insurance that covers a bit more than 80% of the average user’s medical costs…. Low income beneficiaries have all or part of their premiums and out-of-pocket costs paid by Medicaid….’ And here is he is on the ACA: ‘For 8.8 million current enrollees in the ACA marketplace (as of June 31 30), subsidies cover an average of 73% of the premium for plans with a weighted average actuarial value of 80%…. On average, then, the ACA marketplace covers about 58% of enrollees’ costs–though that average is very uneven…. For another 12 million people whom the ACA rendered eligible for Medicaid, federal and state government cover close to 100% of costs….’

That is the the essence of the upcoming healthcare fights. Everything else is window dressing or mechanics to shift blame for large benefit cuts.