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Abstract
HEALTH CARE COSTS Karyn Schwartz, Jeannie Fuglesten Biniek, Matthew Rae, Tricia Neuman, and Larry Levitt, Kaiser Family Foundation, KFF Issue Brief, March 1, 2021 "Our analysis looks at the expected reduction in private health insurance spending that would occur if private insurers used Medicare rates. The degree to which the health care savings are passed though would likely vary across jobs and labor markets. Because employer-sponsored health benefits are not taxable as income while wages are, these shifts could also affect taxes paid by employers and employees and revenues for the federal government and states. The potential reduction in per-per-son spending attributable to switching to Medicare rates increases steadily with age after age 3, approximately tripling from $1,387 for adults ages 19 to 35 to $3,944 among adults 55 to 64- On average, per-per-son health care spending for adults age 19 to 64 with private insurance would be $2,096 less and per-person health care spending for children age 0 to 18 would be $1,033 less if Medicare rates were used."
