Medicare is the most costly and least efficient federal entitlement. Consumers are plagued by serious gaps in coverage. The program loses tens of billions of dollars annually through fraud and waste, while doctors are shortchanged and driven out of the system. In short, Medicare is an unsustainable failure and must be fundamentally reformed.
A defined contribution adjusted by income
The Heritage plan provides retirees with premium support payments from the government, similar to what federal employees now receive. This support is decreased for the most affluent 9 percent of retirees. Seniors may choose to use their premium support for Medicare's fee-for-service plan or private health plans.
Protection against bankruptcy from medical bills
In addition to the option of keeping your current health coverage or choosing a better policy, the Heritage plan includes new protection against catastrophic health care expenses to ensure that you cannot be bankrupted by huge medical bills.
Medicare, at last, operates on a budget
Medicare currently faces an unfunded liability of over $30 trillion. Under the Heritage plan, premium support is set based on the principle that when private plans compete, you win - resulting in better quality at lower costs. Our plan also caps total Medicare spending to prevent runaway costs. This gives competing plans an incentive to control their costs.
Eliminate restrictions on doctor-patient arrangements
Current law restricts arrangements that doctors and patients might wish to make outside of the Medicare program. The Heritage plan abolishes those restrictions so doctors are free to provide care beyond Medicare limits - without Washington in the middle.
New retirees can keep their existing plans
During the five-year transition to full premium support, our plan requires Medicare to provide defined contributions for any retirees who want to remain in their current health plan, including employer-based coverage or other health plans.