Explain how the voucher works

[cookiemdough]

Has anyone found an easy to follow source for how the voucher program for Medicare would even work?

I still have the same questions I did when I first heard about it during the ACA debates.

1) How was the dollar amount of the voucher determined?
2) How does it compare to the actual cost of insurance especially for older Americans?
3) If there is a shortfall that seniors can't cover do they just go without insurance?
4) Will the amount of the voucher increase with COL?

[soontobeka]

This article is very dated (1981) but seems to be the only straight forward document that explains the potential Medicare voucher program. content.healthaffairs.org/content/1/1/39.full.pdf

According to this article: the value of the Medicare voucher would be based on X year Medicare expenditure less premium paid by beneficiary indexed by GNP deflator.

Voucher could be applied toward the purchase of any qualified private health plan in their area.

ETA: if the premium was lower than the voucher the person receives cash from Medicare, if the premium is higher than the voucher, the person pays the difference.

[sweettooth]

Everything I read says the vouchers would be indexed to the COL, but the problem is that the cost of health care goes up more than the COL does. It sounds to me like it would be falling into a deeper hole each year.