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Sebelius: Health Reform Will Reduce Medicare Costs, Coverage Threats
HHS Secretary Kathleen Sebelius continues to press the need for healthcare reform with the release this week of a new government-sponsored report that highlights the escalating cost of healthcare and the threats to coverage for seniors.
The report, America's Seniors and Health Insurance Reform: Protecting Coverage and Strengthening Medicare, said healthcare reforms will strengthen and protect Medicare coverage.
"Senior citizens have seen their premiums and out-of-pocket drug costs rise and without reform, many seniors on Medicare could lose access to the doctor they know and trust," Sebelius said. "Health insurance reform will protect the coverage seniors depend on, improve the quality of care and help make Medicare strong."
The report identifies several problem areas for seniors, including:
- Overpayments to private plans: A typical older couple in traditional Medicare will pay almost $90 next year on average to subsidize private insurance companies who are not providing their health benefits. Health insurance reform will eliminate these overpayments.
- High prescription drug prices: Health insurance reform will cut the drug costs that seniors have to bear in the "doughnut hole" by 50%.
- Imminent doctors' payment cut will limit access: Because of a flawed system for paying physicians, Medicare is scheduled to reduce its fees by 21% next year. According to a recent survey by the American Medical Association, if Medicare payments are cut by even half that amount, or 10%, 60% of physicians report that they will reduce the number of new Medicare patients they will treat, and 40% will reduce the number of established Medicare patients they treat. Health insurance reform will stop this cut and ensure seniors can continue to see their doctor.
- Preventing Medicare from going bankrupt: The Medicare Hospital Insurance Trust Fund is projected to be exhausted in eight years, sometime during 2017. Health insurance reform will reduce overpayments to private plans and clamp down on fraud and abuse to bring down premiums for all seniors and extend the life of the Medicare trust fund by five years.
John Commins is an editor with HealthLeaders Media. He can be reached at jcommins@healthleadersmedia.com.
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Jack Foster (9/4/2009 at 8:49 AM)
Is there any wonder confusion continues to surround health care reform? The president says one thing (??you don't have to participate. If you are happy with the health care that you've got, then keep it.?) Those few words alone sow seeds of confusion. The truth is that the health care bills currently before Congress would force you to switch to a managed-care plan with limits on your access to specialists and tests. Then, there?s the question of how a new health care plan would be paid for. How about by cutting $500 billion from Medicare? That?s a 10% cut over the next decade when 30% more people are going to be in the program and that?s cruel because it?s going to mean too little money to take care of seniors. It?s going to mean seniors can?t get treatments.
KMiller (8/31/2009 at 3:37 PM)
I guess if we wait another week a different spin or change in HHS sect'y Sebelius's position will be forthcoming. What is it with these people? This is pure drivel. 1) a whopping $90 increase? And how much will that couple's taxes go up if "insurance reform" or "health care reform" is passed? 2) Doughnut hole will be filled because Big Pharma cut a side deal and will be able to keep other prices 3) a flawed system? And we now want the same people who developed the flawed system to preside over a new system? Huh? 4) Medicare is going bankrupt so we want to spend an additional TRILLION dollars to fix it? Double Huh? Different week, different spin. Spin the stories the way the polls tell you. This is shameful.
Mike Lawson (8/31/2009 at 3:25 PM)
The analysis and many of its sources are flawed. If you are going to protect Medicare and lower costs, it cannot be done by adding millions of new beneficiaries to the roles. Some of these strategies have been offered up for many years, implement measures for them to succeed, reduce errors and fraud ...yes, but add in malpractice reform (a strategy that has been effective). Once these and other actions prove effective use those dollars to enhance benefits and expand coverage.