Medicare Monitor

Medicare Monitor

The Palm Beach Post's veteran Washington correspondent, Larry Lipman, tracks policy makers and interest groups who are shaping the future of the federal health insurance program for the elderly.

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Medicare is the federal health care system that covers about 36 million people age 65 and older, plus 7 million disabled. It has four parts:

Part A Covers inpatient hospital care as well as nursing home, home health and hospice care. Nearly all elderly and disabled Americans qualify for Part A coverage.
Financed by a 2.9 percent payroll tax divided equally between employees and employers.

Part B Covers outpatient care, doctor’s services, durable medical equipment, home health visits and preventive care. Part B coverage is voluntary, but roughly 40 million are enrolled.
Financed by beneficiary premiums and federal general revenue. Current monthly premiums are $93.50. Starting this year, individuals whose taxable income is more than $80,000 will pay a higher premium.

Part C Medicare Advantage managed care plans provide health care normally covered by Medicare Parts A and B. They may also provide some other benefits, including prescription drugs, not covered by traditional Medicare. Oart C is voluntary; about 7 million beneficiaries are enrolled.
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Part D Medicare prescription drug plans come in two types, those that just cover prescription drugs and those that cover drugs as part of a broader managed care benefit. Part D is voluntary. About 9.2 million beneficiaries are in stand-alone drug plans and about 5.1 million are in managed care drug plans.
The plans are private and financed by Medicare and beneficiary premiums, which vary among plans.
-- Larry Lipman

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Home > Medicare Monitor > Archives > 2008 > March > 25 > Entry

Lots to say about trustees report

By Larry Lipman | Tuesday, March 25, 2008, 05:51 PM

Lots of people have lots to say about today’s Medicare and Social Security trustees reports. Here are some of the comments:

Jim Nussle, director, Office of Management and Budget: “The trustees report yet again triggers a funding warning in Medicare - signaling the program is in serious straits as it faces a $36 trillion unfunded obligation. In each of the last three years, the president has proposed responsible steps to slow the growth rate in Medicare - offering a more aggressive proposal each year to reflect the growing magnitude of the problem. In each of those years, the trustees have provided a sober warning. Each year, the president proposed action and Congress proclaimed action was needed. And each year, nothing was done.”

Rep. Pete Stark, D-Calif., chairman of the House Ways and Means health subcommittee: “While the program faces demographic challenges in the future, those can be dealt with if there is a bipartisan commitment to preserve and improve the program. We should not succumb to alarmist claims that the sky is falling. The most important immediate step we can take to help Medicare’s financial outlook is to eliminate the Medicare Advantage overpayments. This corporate pork fattens insurance company profits while unnecessarily draining program resources. I can’t take seriously the claims of concern from those who protect these excessive payments at the expense of beneficiaries, taxpayers and the program’s future.”

Rep. Roy Blunt, R-Mo., House Republican whip: “In just over 10 years, Medicare will start spending more than it collects. There are really only two paths to take: raise taxes, kick the can down the road and ignore the problem as the Democrats have advocated; or do what our constituents elected us to do, find a solution. Earlier this year, Republican Leader John Boehner (Ohio) and Democratic Leader Steny Hoyer (Md.) introduced conservative legislation that would make the needed reforms to put Medicare on a path of economic stability. I hope the majority will join us to find a solution for current and future Medicare beneficiaries.”

Robert Greenstein, executive director, Center on Budget and Policy Priorities: Medicare’s coming financial imbalances stem not from the nature of Medicare (or mainly from demographic pressures), but rather from the continuing sharp rise in health care costs throughout the U.S. health care system, in the public and private sectors alike. For the past 30 years, Medicare costs per beneficiary have risen at a nearly identical rate as health care costs per beneficiary systemwide.

Dr. Edward Langston, board chair, American Medical Association : “Findings from the latest Medicare trustees report point to the critical need to reform the broken physician payment system. Cutting Medicare physician payments 41 percent over nine years while practice costs increase is penny-wise and pound foolish. Trying to save Medicare money by slashing physician payments will ruin the physician foundation of Medicare for current and future generations of seniors.”

Barbara B. Kennelly, president/CEO, National Committee to Preserve Social Security and Medicare: “The challenges of skyrocketing healthcare costs are threatening not just seniors in Medicare but Americans nationwide. No doubt, this annual report will have the sky-is-falling crowd calling for ‘entitlement reform’ again while they continue to ignore America’s healthcare crisis and fight to protect billions in insurance industry subsidies which steal years of solvency from the Medicare program.”

David Sloane, senior vice president, AARP: “Today’s report is one more reminder that America’s health care system is in trouble. Skyrocketing health care costs are shortening Medicare’s lifespan, while reasonable steps like expanding health information technology and comparative medical research remain stalled in Congress. Costs to the program and the people it serves continue to climb - most acutely in the form of higher out-of-pocket costs for the people who rely on Medicare.”

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