CBO Confirms: Medicare Premium Support Means Savings for Taxpayers and Seniors

A major report by the Congressional Budget Office (CBO) confirms that Medicare premium support (a defined-contribution system of health-plan financing) would make the financially troubled federal program more fiscally sustainable.[1] The CBO finds that, in a new competitive system of health plans, private plans can offer the same benefit and services as traditional Medicare fee-for-service (FFS) plans—at a lower cost to taxpayers.

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