One in five seniors nationwide require Medicaid to pay their Medicare premiums. If whatever healthcare plan the Trump Republicans devise removes $800 billion from Medicaid, that might cause many elderly to take the risk and drop Medicare because the higher costs.
Insurance companies establish their premiums by estimating the average incidence of various diseases, based on the “Risk-Pool” of participants. If cuts in Medicaid, under the Trump Health Care Plan, cause a number of seniors to drop Medicare, chances are that they will be among the ‘younger and healthier’ of seniors.
That means that removing the healthier participants from the risk pool of participants would raise the risk level toward the older and sicklier among seniors. The insurance companies, in turn, would raise Medicare premiums, causing even more participants to leave, and the rates might rise even higher.
Joseph P. Huber, Plantation