Baltimore Sun Editorial: Medicare Waste

Baltimore Sun:


Private health insurance plans that serve nearly a fourth of all Medicare beneficiaries, including more than 40,000 in Maryland, were set up under the assumption that the private companies could provide the same services as Medicare at a lower cost. Instead, many have significantly increased costs without improving care, a new analysis of the Medicare Advantage program shows.It's time for the multibillion-dollar waste to end. Congress should act early next year to reduce these payments to private insurance companies to the level of traditional Medicare. That could save $160 billion over the next 10 years, money that would be better spent offsetting the soaring costs of Medicare as a flood of baby boomers join the program. Enrollment in private Medicare fee-for-service plans has exploded to 2.3 million recently from just 26,000 at the end of 2003. That growth has driven up costs because the government pays the private insurers 13 percent on average more than it would spend for the same number of beneficiaries receiving traditional Medicare. In Maryland, the extra money raked in by the insurance companies added an estimated $28.7 million to the cost of Medicare last year - $16 million to private insurers and $12.7 million in increased premiums paid by seniors participating in Medicare Part B, according to the analysis by the USAction Education Fund for Progressive Maryland, a liberal advocacy group here.
In a campaign debate this fall, President-elect Barack Obama described the extra costs as a "giveaway" to private insurers. And former Sen. Tom Daschle of South Dakota, who has been picked by Mr. Obama to become secretary of health and human services, recently warned that such overpayments to insurance companies are threatening Medicare's solvency.

For the rest of this editorial, please click here.

The Disabled Have a Long Waiting Time Before Qualifying for Medicare

Stuart recently posted on MS Related News that Congress and the Obama administration should put an end to the 2 year waiting period people deemed as “too sick” have to face before qualifying for Medicare. Medicare covers both disabled and elderly people, but approximately 1.5 million disable people find themselves waiting for a very long time before receiving any benefits from Medicare.

Of the 1.5 million, 40% are uninsured for part of the wait and 25% are uninsured for the full 24 months. There is new legislation proposed by Rep. Gene Green, D-Texas, and Sen. Jeff Bingaman, D-N.M that would eliminate waiting time gradually over 10 years. Will the Obama campaign help get this legislation passed?

What's the future for healthcare?

One week from today, the American people will know who their leader is for the next four years. The future president has a huge impact on the future of Medicare. So what are their views on what to do? Whoever wins is up for a challenge, as Medicare spending has increased 40% in the past four years, from $309 billion in 2003 up to $431 billion in 2007. Not to mention, Medicare Part A is set to be bankrupt by 2019.

So what do the two presidential candidates have in mind to turn Medicare around? CBS News covers their plans here. John McCain wants to group together payments to providers into one large sum for better quality care than paying companies on a case-by-case treatment and test basis. He also looks to make those who make over $80,000 a year pay a larger percentage of their own prescriptions. For more on his platform, read here.

On the other hand, Barack Obama wants to allow Medicare negotiate with pharma companies to allow bring down prices of care, as the Vetrans Association currently does. For an in-depth look at Obama's Medicare platform, read here.

New Obama Campaign Warns Seniors About Medicare Reductions

I came across this post on The Huffington Post in which it discusses Senator’s Obama’s recent ad campaign that show several shots of distressed seniors in order to drive the message that McCain wants to tax health care benefits and cut Medicare.

The campaign puts the figure at $882 million for Medicare alone. The post also mentions that the McCain campaign did not make a statement about which elements of the program would be cut. Watch the video below: