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How Does the Benefit Value of Medicare Compare to the Benefit Value of Typical Large Employer Plans?

This analysis finds that, even with its new drug benefit, Medicare on average provides less generous benefits to seniors than they would receive under a typical large-employer health plan or the most popular plan available to federal employees.

The study compares the traditional fee-for-service Medicare benefit package, including the drug benefit, with a typical large employer PPO plan and with the Blue Cross/Blue Shield standard national PPO plan available to federal workers under the Federal Employees Health Benefits Plan, which covers about half of all federal workers.

It finds that seniors on average would expect to receive Medicare benefits valued at $10,610 in 2007. In comparison, they would expect to receive benefits valued at $12,160 in the typical large employer PPO and $11,780 in the federal workers’ plan.

Researchers at Hewitt Associates and the Kaiser Family Foundation conducted the analysis and authored the study.

Reports,  Studies  and Toplines Icon Issue Brief (.pdf)



Information provided by Medicare Policy Project
Publication Number: 7768
Publish Date: 2008-09-22

 

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