Health Insurance Articles
Democrats Looking To Cut Medicare Advantage By $120 Billion
2009-10-02
When presidential candidate Barack Obama criticized his opponent Sen. John McCain for proposing a tax on enhanced employer-sponsored health insurance to workers, he set the tone for a more creative approach to funding an estimated $1-trillion healthcare reform package. Since then, scare tactics have taken over as the complicated and burdensome congressional bill H.R. 3200 was introduced. Many seniors fear that healthcare reform could have an impact on their Medicare or Medicaid benefits. President Obama promised that only wasteful government sponsored programs would be targeted as a source of funding. Democrats have proposed a cut in the Medicare Advantage program because the program provides beyond standard care for subscribers.
The proposed $120-billion cut in Medicare Advantage will not leave seniors high and dry when it comes to health coverage. On the contrary, it might increase access to needed care provided by the plan's stepsister, Medicaid. On Sept. 23, 2009, the White House released a report entitled "Health Insurance and Medicare: Making Medicare Stronger for Seniors." This report emphasizes a commitment to necessary senior healthcare issues, such as cost-free preventative care like mammograms and colonoscopies. A major concern for seniors is the cost of prescription drugs. This report details a plan for deeper discounts for them.
The key concept is the difference between "needed" health coverage and "wanted" health-related care. As American families decide between needs and wants on a daily basis, it makes sense to have a health insurance reform plan that does the same. The proposal to cut $120 billion from the plan is slated to take place over the next 10 years. Such a timeline allows preparation for change and time for the insured to adjust their health insurance plan. "Though some industry groups complain the spending reductions are too severe, adjustments could be made if problems arose because (Medicare Advantage changes) would be phased in gradually," reported The Boston Globe. "Most (changes) are aimed at making the programs more efficient."
It should come as no surprise that partisan politics are an issue in the debate over healthcare reform. Republicans have already honed in on reductions in Medicare spending in an attempt to derail efforts to reform healthcare. Both sides couldn't be further apart on the operative measures to accomplish the change.
The thing to keep in mind is that Medicare coverage is not being cut all together. In order to redirect excessive funds going to the Medicare Advantage program, there will be major coverage cutting. However, Medicare will still available on a basic level. Overall, the Democrats' plan to redirect $120 billion of Medicare Advantage funding makes a good argument.
