Defined Contributions as an Option in Medicare

Policy Reports | Health

No. 231
Friday, February 04, 2000
by Mark E. Litow, F.S.A.

We have analyzed a distinct new health care delivery and financing system for the Medicare aged population (excluding institutional and Medicaid individuals). The new alternative, referred to as the Medicare Defined Contribution Alternative (MDCA), allows an individual the choice between Medicare as it currently exists and a defined contribution from Medicare that must be used to purchase a plan that includes at least catastrophic insurance.

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