Research for Retirement Benefits

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September 1, 1998
CNA was asked to determine the costs of extending three different types of benefits to the Medicare-eligible population. The first options would extend the National Mail Order Pharmacy (NMOP) program. The second option is to offer the DOD Medicare-eligible beneficiaries enrollment in the Federal Employee Health Benefits Program (FEHBP). The third option is to offer a Medicare supplemental insurance package sponsored by DOD. The three plans offer different sets of benefits and a wide variation in cost. The least expensive plan is the NMOP, costing about $267 million. The most expensive plan would be to offer FEHBP, costing DOD about $1.6 billion. In the middle of these two plans is our proposed Medigap subsidy in which DOD could design and offer its own unique Medigap plan covering core benefits. It would cost around $600-$650 million.
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October 1, 1986
The Old Age and Survivor's Insurance (OASI) programs of Social Security and the military retirement system are two of the largest and fastest growing income replacement programs in the United States. The size of these programs, in terms of both coverage and cost, make them of continuing interest to policymakers. Although both OASI and the military retirement system provide substantial amounts of income for retirees, they are fundamentally different. In addition to providing retirement annuities, OASI attempts to improve the social welfare by redistributing income toward the old and the retired poor (i.e., those with low earnings histories). The military retirement system helps manage military manpower. This system provides incentives for some personnel to remain in military service, and incentives for others to retire. Through this system the military is able to maintain an experienced force with sufficient youth and vigor to cope with the rigors and stresses of military life.
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