The Congressional Health Care for Seniors Act
Senator Rand Paul, M.D.Executive Summary
The Congressional Health Care for Seniors Act (CHCSA) would simplyenroll all seniors into the same health care plan as their Member of Congress and other federal employees
the Federal Employees HealthBenefits Plan.In 2010, federal employees could choose from among the 250 plansparticipating in FEHBP, including 20 nationwide plans. That means thisplan will provide Medicare beneficiaries with richer benefits, higher quality health care, better access to doctors and providers, and a wider choice of health care plans that best suits their needs. Perhaps mostimportantly, because Members of Congress will be enrolled in the sameplans, seniors can expect the program to continue as the best healthinsurance in the country.This plan is expected to save taxpayers $1 trillion over the first 10 years
and reduce Medicare’s unfunded liabilities by
almost $16 trillion.Furthermore, individual seniors will save thousands of dollars from their personal health care budget each year while receiving more generoushealth benefits.Like Medicare, FEHBP is a regulated marketplace where plans mustaccept any enrollee and cannot deny coverage to an individual for anyreason. All individuals within a plan pay the same premium regardlessof their health status or pre-existing conditions.The CHCSA ensures that OPM will continue to ensure these protections for seniors, but also prevents the agencyfrom placing onerous new mandates on health insurance plans. Further, the CHCSA makes it easier for new
insurance plans to enter the market to compete for seniors’ business –
including allowing employers to continuecovering seniors through retirement.In order to ensure low premiums and prevent plans from cherry-
picking patients, the CHCSA creates a new “high
pool” for the highest cost patients within the FEHBP. The federal government will dire
ctly reimburse health care plansfor enrolling the costliest 5 percent of patients, which keeps premiums low while allowing high-risk patients to get thesame high-quality health care as every other enrollee
federal employees and seniors alike.The CHCSA ensures affordability of high-quality health care. In addition to subsidizing three-quarters of the cost of the average plan, seniors who cannot afford to pay the remaining premium will receive additional premium assistanceand cost-sharing through the Medicaid program.
The Congressional Health Carefor Seniors Act (CHCSA) providesbetter health care -- benefits,choice, quality, and outcomes --
to our nation’s
The CHCSA will cost individualseniors $1,500 less per year in outof pocket costs, includingpremiums.
The CHCSA will save taxpayers$1 trillion over 10 years and
reduce Medicare’s unfunded
liabilities by almost $16 trillionover the 75-year window.