Medicare Reform: An Update

By Kelli M. Donley

In February 7, the Century Foundation, a non-profit group that analyses major economic and political issues, released a report on Medicare. "The Century Foundation Task Force on Medicare Reform" includes seven points of recommendation for the program.

These recommendations include:

• The program should continue as a method of social insurance to protect older and disabled Americans from the burden of healthcare debt.
• Medicare should continue to be funded by workers, employers, the government, and the general population.
• Coverage under Medicare should be expanded to include disease prevention, management of chronic disease, and the treatment of acute illness.
• Medicare reform proposals should reduce the disadvantages faced by vulnerable populations covered by the program.
• The program should be geared toward promoting and encouraging high quality care.
• Patients with Medicare should have an easier method of selecting among alternative health insurance options.
• Medicare administration should be funded to promote these recommendations.

The task force reports Medicare insures more Americans than any other government healthcare program--some 39 million people. This 37-year-old program now accounts for more than 12% of the national budget, with one in every five dollars in the US being spent on healthcare coming from Medicare.¹

With such a vast amount of people to provide for, the program has long been a source of controversy. Politicians from both sides argue about the budget, benefits, and goals of Medicare.

Alan DeFend, vice president of public affairs for the American Health Care Association (AHCA) said his organization is trying to bring attention to Medicare regulations that will expire October 1, 2002. These insurance coverage expirations for skilled nursing home residents will add a $60 cost per day for each resident.

"The consequences of $60 a day... if you take that number and multiply it by the number of appropriate Medicare beneficiaries, is $2.5-3 billion. It is a 17% reduction in coverage. Right now, calling attention to this fact is our No.1 concern," he said.

Other Medicare budgeting issues are also of top concern to senior groups. Officials at the American Association of Retired Persons (AARP) are promoting a congressional letter writing campaign through their web site, www.aarp.org, to promote further Medicare funding. They report that Americans aged 65 and older are the largest consumers of prescription drugs, yet the least likely to have insurance to cover such costs. Medicare does not cover prescription drug costs--a complaint heard frequently in elderly groups. AARP officials are asking members and others to ask Congress to add prescription drug costs to the Medicare budget via a hyperlink on their web site.²

The 60 Plus Association, a non-partisan senior advocacy group, is also working toward Medicare prescription coverage. President Jim Martin said such drugs are absolutely necessary for many seniors.

"We believe strongly that a senior should not have to choose between food and a needed prescription. We understand that prescription drugs enable seniors to live longer and better, and stay out of hospitals," he said.

Organizations that chart Medicare progress and promote reform include the Twentieth Century Fund, which has a variety of Medicare related information on their web site: www.tcg.org, and the American Medical Association, which has a specific Medicare reform section on their web site: www.ama-assn.org.

The balancing act of a shrinking economy and growing retiring sector will undoubtedly affect Medicare in the next few years. Whether prescription drugs and other services will be covered will continue to be under debate.

For a complete list of references, log onto: www.alsuccess.com

Click here to purchase reprints

e-mail: alsuccess@vpico.com
Copyright © 2007 by Virgo Publishing.
Please read our legal page before using this site.