Research Report A Proposal to Finance Long-Term Care Services through Medicare with an Income Tax Surcharge
Richard W. Johnson, Leonard E. Burman
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This paper proposes to expand Medicare to cover comprehensive long-term care services, including home care and custodial nursing home care. These services would be financed by a surcharge on federal income taxes. Unlike the regressive payroll tax that finances Medicares hospitalization coverage, the proposed surcharge would not increase tax burdens for low-income people. Beneficiaries would share costs through deductibles and copayments, but the program would include stop loss coverage and special protections for low-income adults. By providing long-term care insurance that protects the assets of older adults, our proposal would eliminate the savings disincentives inherent in the means-tested Medicaid system.
Research and Evidence Health Policy Tax and Income Supports
Expertise Taxes and the Economy Health Care Coverage, Access, and Affordability Medicare and Medicaid Aging and Retirement
Tags Medicare Medicare and private health insurance Long-term services and support Health insurance Individual taxes Federal budget and economy Retirement policy