Medicare Reform Debate in Congress: Long Term Care Expert Valerie VanBooven Simplifies The Issues
As Republicans and Democrats debate and revise the proposed changes to Medicare, many consumers are asking questions, and wanting clarification. Valerie VanBooven - The Long Term Care Expert addresses the issues, and adds value and understanding to one of the hottest topics of our time.
(PRWEB) November 16, 2003
November 17th, 2003/St. Louis, Missouri/www. aginganswer. com
House and Senate negotiators have been working on a bill to revamp Medicare for months. There will be a meeting of the full Conference Committee at 4:30pm on Tuesday, November 18 to "vote out a bill". Chances are that there will be a 3-day review period after the bill is voted out of the Conference Committee. The debate will then begin late this week. (November 17th, 2003)
Many consumers are wondering exactly what changes are being discussed, and how they will be effected by the new bill.
Valerie VanBooven RN, BSN, CMC addresses the issues and adds value and understanding to a topic that could change the way our healthcare is paid for in this country, especially for seniors and the disabled.
“Before rushing to a conclusion on this Medicare legislation, let’s be sure to design a plan that ALL Americans can LIVE WITH for years to come.” –Valerie VanBooven
Summary
The future direction of Medicare, the nation's guaranteed health insurance program covering 40 million older and disabled Americans, is currently being negotiated in a conference committee formed to address differences in House and Senate bills that were passed in June 2003 (HR 1, S 1). At the center of Medicare reform are contentious questions concerning overall program costs and provisions of a prescription drug plan that could negatively affect millions of elderly Americans and the huge number of baby-boomers expected to retire in the coming years. Some concerns of advocates include:
Medicare will be privatized
The "premium support" or "comparative cost adjustment" competition requirements proposed by the House bill essentially privatize Medicare and increase complexity in health care by forcing the program to compete with private insurance companies in geographically defined areas throughout the country. This will drive up premiums, causing many seniors to switch to less costly private insurance plans administered by HMOs. Physician choice, a central component of fee-for-service Medicare since its inception in the 1960s, will be impaired, especially in rural areas. Additionally, the universality of the program will be severely undermined, triggering a diminishing of public support.
Prescription drug benefits won't reach everyone who needs them
Limiting the prescription drug benefit to those under 150% of the federal poverty level cuts off the 6 to 7 million people earning under $18,000 per year, one of the populations least likely to have drug coverage today. Also, the strict cost control mechanism associated with the 10 year, $400 billion appropriation called for by many in Congress will undercut the protection Medicare provides to its recipients, a protection central to the program's mission.
House Bill – H. R.1
· The House plan will pay for 80 percent of drug bills after a $250 deductible up to a maximum of $2,000. The beneficiary will then be responsible for 100 percent of their drug bills from $2,000 to $4,900 while still paying premiums every month. Above $4,900, the House plan will cover 100 percent.
· The bill prohibits the Medicare program from using the bargaining power of its
40 million beneficiaries to negotiate lower drug prices.
· It discriminates against retirees who get coverage through employer-provided health plans since employer contributions would not count toward meeting the deductibles.
· By 2010, all of Medicare (hospitals, doctors, and drug programs) would be turned into a privatized system. (it is suggested that this has been revised to a “test” market)
· The House added $174 billion in tax giveaways for Medical Savings Accounts, which threaten health plans of active workers. Those funds could be better used for a better Medicare drug benefit.
Senate Bill – S.1
· The Senate plan will pay for only 50 percent of drug costs after a $275 deductible up to a maximum of $4,500. The beneficiary will then be responsible for 100 percent of their drug expenses from $4,500 to $5,813 while still paying premiums every month. Above $5,813, the Senate plan will cover 90 percent.
· It provides disincentives for employers to continue retiree prescription drug coverage because of a low subsidy rate and the method of calculating out-of - pocket expenses for beneficiaries. What the employer pays would not count toward meeting the deductibles. The Congressional Budget Office estimates that 4.4 million retirees who currently received drug coverage would lose that coverage under the Senate bill. (this has been revised to protect retirees)
· Like the House bill, seniors would be forced into privately run plans, without guaranteed benefits or premiums.
· There are no incentives to use the bargaining power of 40 million Medicare beneficiaries to bring drug prices down.
"There are 3 big sticking points right now", states VanBooven, "The first one revolves around an issue that negotiators call "premium support"-which essentially injects more free market competition into traditional Medicare. The second sticking point is a proposal to limit the growth of Medicare spending, and finally the last obstacle seems to be a proposal to authorize new tax savings accounts for medical expenses."
"As Congress continues to debate, it is important that consumers in America understand the issues, because this will effect us for generations to come", Valerie says.
Valerie VanBooven is the author of: "Aging Answers: Secrets to Successful Long-Term Care Planning, Caregiving, and Crisis Management"
She is considered a national long-term care expert, and has been recently interviewed on CNNFN's Your Money with Ali Veshi, in Time Magazine, Senior Market Advisor, Best Practices in Compensation and Benefits Magazine, on Behind the Headlines with Jane Silk (Radio America), and by Associated Press, all for her expertise in senior issues.
For more information, and to contact Valerie, please visit her at www. theltcexpert. com, or at www. aginganswer. com.
She can be contacted by phone at 877-529-0550.
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