Medicare at 42: Take a Minute to Make Sure It Has a Long Life

by Tula Connell, Jul 30, 2007

Today’s is the 42nd anniversary of Medicare—the primary health insurance policy for nearly all Americans age 65 and older and people with long-term disabilities. With 43 million Americans not covered by any health insurance plans, older Americans need Medicare now more than ever.

But there’s a lot that needs to be done to strengthen Medicare.

Saying Medicare has reached a “dangerous crossroads,” Edward Coyle, executive director of the Alliance for Retired Americans, points out that

the increasing privatization of key Medicare programs—fueled by $7.5 billion in annual overpayments to insurance companies through falsely named Medicare Advantage plans—siphons away money from the Medicare Trust Fund. Seniors’ health care is being sacrificed for the profits of large corporations.

Last week, the House Ways and Means Committee and the House Energy and Commerce Committee each passed the Children’s Health and Medicare Protection Act (H.R. 3162), a health care bill to continue insurance coverage for millions of children and make dramatic improvements in Medicare, beginning with more equitable payments to Medicare Advantage (MA) plans. (Get background on the bill’s provisions for children’s health coverage here.)The insurance industry is countering by spending a lot of money on TV ads to convince people it’s a terrible idea to reduce the overpayments to private MA plans. The commercials began running across the country this week, urging viewers to tell their congressional representatives to oppose the bill.

Don’t let the industry get away with it. Take a minute to e-mail your representatives to support the bill by clicking here. 

The bill, known as the CHAMP Act,l would:

• Phase out MA plan overpayments over four years and repeal the MA Stabilization Fund. These cuts benefit the overhwhelming majority of Medcare benficiaries—more than 80 percent—enrolled in traditional Medicare who had to subsidize private MA plans with higher Medicare premium payments.
• Protect those seniors and people with disabilities enrolled in MA plans from paying higher cost-sharing than traditional Medicare and marketing fraud and abuse through stronger oversight and standardized rules.
• Expand the eligibility criteria and imrpove the Medicare Savings Program and the Low Income Subsidy for Medicare drug coverage so low-income Medicare beneficiaries can have affordable health coverage.
• Allow Medicare beneficiaries to change their drug plans if the plan makes midyear changes in the list of covered drugs. Currently, they cannot.
• Ensure Medicare beneficiaries access to the doctor of their choice by reversing the scheduled cut in physician reimbursement.
• Authorize the addition of new Medicare services that prevent or detect illness or disability and eliminate fees for existing preventive services.

For a summary of H.R. 3162 and a section-by-section analysis of the bill, click here. Or call your congressional office with this toll free number: 1-800-828-0498.

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