Contrary to comments by its proponents, the proposed Medicare prescription drug legislation may actually result in a shrinking of the Medicare benefit and program, as added costs are passed on to the elders and people with disabilities who rely on Medicare. The bill includes steep increases in the deductible for hospital insurance and potentially steep increases to Part B premiums that would vary by location. In addition, the bill proposes to give additional money to HMOs and PPOs, already found to be overpaid under the current payment system. Such continued overpayment raises the possibility of depletion of resources for the traditional Medicare program, which currently serves about 90% of Medicare beneficiaries.

"This proposed legislation provides beneficiaries with fewer benefits than the Medicare Catastrophic Coverage Act of 1989. That law included expanded hospital and nursing home care, in addition to a prescription drug benefit," explains Judith Stein, Executive Director of the Center for Medicare Advocacy. "Medicare beneficiaries overwhelmingly rejected that legislation, resulting in its repeal, because of a surtax similar to the income-relating of Part B premiums currently being contemplated," Ms. Stein continues.

A careful review of Medicare legislative history shows that adding the proposed limited prescription drug bill benefit will not be the biggest expansion of Medicare, as proponents of the bill proclaim. Other expansions of the program, including making people who qualify for Social Security Disability benefits eligible for Medicare in 1972, had a greater impact on access to needed health care.

According to Ms. Stein, "We need to consider the impact of the total bill being negotiated by Congress. Overall, millions of Medicare beneficiaries may face greater, and not less, out-of-pocket expenses as a result of this legislation."

Established in 1985, the Center for Medicare Advocacy, Inc., is a national, non-partisan education and advocacy organization that identifies and promotes policy and advocacy solutions to ensure that elders and people with disabilities have access to Medicare and quality health care.

© Copyright, Center for Medicare Advocacy, Inc. 01/08/2010