Modernising Traditional Medicare Benefits

Traditional coverage lacks an OOP cap, keeps separate hospital and medical cost-sharing, and leaves complex choices; the private-plan option covered >50% in 2025.
Benefit value was estimated in the low-90% range for private plans versus the mid-80% range for traditional coverage without supplements, strengthening private-plan appeal.
Adding a $5K spending cap could raise traditional coverage's value by ~5 points, while one budget option paired an $8.5K cap with ~$3B yearly savings.
Key design choices include a flat or income-related cap, whether supplemental or Medicaid payments count, and unified deductibles to simplify hospital and medical coverage.
Priority reforms are catastrophic protection, simpler cost-sharing, and supplemental reform, with special attention to low-income beneficiaries and the hospital trust fund's solvency.