New AARP Research Analyzes Three Issues Key to Comprehensive Health Reform

March 9, 2009 -- WASHINGTON -- As the health care reform debate intensifies across the country, AARP today released three new reports on major issues to health care reform. The AARP reports analyze health plan designs, cost shifting for expensive “specialty” drugs, and the access to coverage for Americans age 50-64.

“The President and Congressional leaders have made it clear that health reform must happen this year, and we’re working with them to make sure it improves options for older Americans who currently face enormous obstacles in the private market, as well as strengthens lifeline programs like Medicare,” said AARP Policy Director John Rother. “This important research can inform the debate to help our elected officials make smart decisions that ensure every American has access to quality, affordable health care.”

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The three reports released today are:

“Health Care Reform: What’s at Stake for 50- to 64-year-olds?” – This report by AARP’s Public Policy Institute analyzes recent data on the fastest growing segment of the uninsured population. Key findings include that more than a quarter (28%) of Americans age 50-64 spend more than 10% of their income on health care—more than one-and-a-half times as many as younger Americans. The complete report is available at http://www.aarp.org/research/health/carefinancing/i24_hcr.html.

“How Consumer Choice Affects Health Coverage Plan Design” – A key challenge of health care reform will be designing new coverage programs for people who are currently without access. This AARP Public Policy Institute report uses employer experience with health coverage to illustrate the trade-offs and issues in designing benefit packages. The complete report is available at http://www.aarp.org/research/health/carefinancing/i23_choice.html.

“The Tier 4 Phenomenon: Shifting the High Cost of Drugs to Consumers” – Study of the practice of shifting massive costs to patients in the form of percentage co-insurance—as opposed to fixed-dollar co-pays—for super expensive “miracle” drugs. This report is especially timely given anticipated developments of legislation to create a pathway to create generic biologics. The complete report is available at http://www.aarp.org/research/health/drugs/tierfour.html.

Source: AARP