A major source of savings would come from making sure seniors pay out of pocket for at least a portion of their care. To accomplish that, Lieberman and Coburn proposed barring insurance companies from selling Medigap policies that offer first-dollar coverage.

 

The plan by Lieberman and Coburn would preserve Medicare as a government program, unlike a House GOP proposal that would require millions of future beneficiaries to purchase coverage from private insurance companies.

 

Additionally, the plan includes a $7,500 limit on out-of-pocket costs for doctor or hospital coverage, a provision designed to protect seniors who face potentially catastrophic costs.

 

According to the most recent report by the Medicare trustees, the giant program's insurance fund is projected to run out of money in 2024, five years earlier than last year's estimate.