Analysis Compares Medicare With Large-Employer PPO, Federal Workers' Health Plan

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Health Insurance / Medical Insurance
Article Date: 24 Sep 2008 - 12:00 PST

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"How Does the Benefit Value of Medicare Compare to the Benefit Value of Typical Large Employer Plans?" Kaiser Family Foundation/Hewitt Associates: The analysis compares the traditional fee-for-service Medicare program, including the drug benefit, with a typical large employer PPO plan and with the standard BlueCross BlueShield national PPO plan available under the Federal Employees Health Benefits Plan. The analysis finds that on average, Medicare beneficiaries would expect to receive benefits valued at $10,610 in 2007, compared with benefits valued at $12,160 in the typical large employer PPO and $11,780 in the federal workers' plan. According to the analysis, Medicare's benefit package is less generous than other plans because of high inpatient deductibles for hospital stays; the lack of a limit on beneficiaries' out-of-pocket spending; the Medicare prescription drug benefit's so-called "doughnut hole" coverage gap; and a general lack of dental coverage (Kaiser Family Foundation release, 9/22).

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