Medicare

                            Position Paper

         For many years, Medicare has provided assistance to senior citizens for all aspects of medical coverage.  Medicare was developed and passed in 1965 by President Lyndon B. Johnson, as amendments to social security legislation.  Medicare has four parts: part A hospital insurance; part B medical insurance; part C Medicare advantage plans; and part D prescription drug plans.  The most discussed and criticized is Medicare part D.  With the passage of the Medicare Prescription Drug Improvement and Modernization Act, Medicare part D came into existence on January 1, 2006.  Any senior with part A or B is eligible for part D coverage.  Until recently, Medicare has gone without a specific prescription drug plan for seniors.  As a result, life was very difficult for seniors with health problems and fixed incomes.  In my opinion, senior citizens deserve every benefit that Medicare has to offer; including access to a program to provide affordable prescription drugs.  Even if the whole system has to be rebuilt and restructured, if it benefits seniors it should be done.  However, many people do not agree with a tax dollar funded program for seniors to receive the care that they need.  As a result, this may affect the current system; as well as, a system yet to be proposed. 

         Medicare, which provides assistance to approximately 42.1 million people, is already under enormous stress to keep up with demand of its services.  With the addition of millions of soon retiring baby boomers; the system will eventually face the red ink or total demise.  To prevent this, alternative sources of funding must be sought and implemented.  Currently, Medicare uses payroll taxes to finance the cost of Medicare.  The typical employee pays 1.45% tax on his income, and the employer matches that amount for a total of 2.9%.  While this is sufficient now, the method of funding will not support the system in the next couple of years. 

         Medicare provides many options of coverage, from part A through part D.  This broad variety creates many problems for seniors who are seeking the right coverage.  The current system, which many feel that is deeply flawed and unnecessarily complicated, has to be restructured into a universal government-operated institution.  With the government at the helm of all aspects of Medicare, all the problems would be exposed and corrected.  Some of these problems are: fraud, benefits to HMOs and other groups, and the rising of costs for profit.  A major burden on Medicare is fraud, which government officials estimate costs Medicare billions of dollars annually.  The Government Accountability Office lists Medicare as a “high-risk” government program in need of reform; partly because of its vulnerability to fraud and its long-term financial problems.  In addition, the fact that HMOs and other groups are benefiting off this corrupt system must be changed.  The way that they are benefiting is that drug companies raise costs of drugs solely for profit.  In turn, that profit is sent to the HMOs and other groups.  If these problems were solved, and the entire system was restructured, Medicare would finally be doing its job.  Which is, to provide the best possible benefits to seniors with a universal government-operated system. 

         Another Reason Medicare must be reformed is for the quality of life for seniors.  These people work most of their lives for an enjoyable retirement.  The current costs of living, inflation, and the essential government programs seniors rely upon are rising dramatically.  These problems prevent seniors from enjoying the retirement they earned. This is especially a problem for seniors who are strapped down by a fixed income.    Medicare must be restructured to improve the quality of life for seniors.

         Since Medicare is a fairly new government institution, it is expected to have its problems.  Including: funding issues, copious amounts of choices and premiums, fraud, raising costs for profit, and casting a shadow over the prospect of an enjoyable retirement.  These are all issues that need to be addressed and corrected so that senior citizens can enjoy every aspect of retirement. The need of a universal government-operated Medicare system has to become the top priority of legislators.  What will life be like for seniors if this program is not changed? Will the corruption continue? Will you step up to protect senior citizens? These are all questions that we face as members of the general public.  We the people are the only ones who can change the policy of these vital government institutions.  We must step up and join groups, such as, The National Committee to Preserve Social Security and Welfare.  This is the only way things will be accomplished.  Just ponder this for a while, when you are old do you want to spend your retirement at a desk paying bills for services you will never receive? 


                      Interest Group

         The interest group I chose is The National Committee to Preserve Social Security and Medicare.  The NCPSSM’s mission is to protect, preserve, promote and ensure the financial security, health, and the wellbeing of current and future generations of maturing Americans.  The committee acts in the best interests of its members through education, services, and the leadership of the board of directors and professional staff.  The efforts of the NCPSSM are directed toward developing better informed citizens and voters.  They encourage their members to learn about the legislative proposals which will affect their working and retirement life.  These are the fundamentals of the NCPSSM, and what they do to serve, and protect the nation’s senior population. 
         
         The NCPSSM’s position on Medicare, is that it should be restructured in a way that it would benefit seniors instead of HMOs and other groups.  They feel that seniors face too many choices of coverage, and that a government-operated prescription drug benefit could provide a universal system for seniors.  Also, prices would not need to increase throughout the year to increase profits.  Privatization of Medicare is something the NCPSSM does not support. They feel that privatization would dramatically raise the cost of premiums for seniors.  In addition, the committee is strictly against President Bush’s proposal of health savings accounts.  The HSAs are private accounts used by individuals who need to save money for out-of-pocket health care expenses.  HSAs, the committee feels, would likely attract healthier and wealthier seniors.  This, in turn, would result in a two-sided Medicare program based on income and health. 

         The National Committee to Preserve Social Security and Medicare is right on track with dealing with issues that affect seniors.  They will continue to advocate for legislation that will make Medicare into what it should be; a universal government-regulated program, which will provide all it can for the health of older Americans.  The NCPSSM will oppose initiatives, such as, the health saving accounts; that will affect the Medicare system adversely.  They will also strive to work toward developing a secure retirement for all Americans.  The NCPSSM is an interest group that agrees with my beliefs.  That seniors should receive the best possible benefits at the lowest cost.  This is why I chose the National Committee to Preserve Social Security and Medicare as my interest group.


Specific Bill and Statements
         Senator Reid, senate minority leader D-NV, feels strongly about Medicare.  While I could not reach him directly through e-mail or telephone, I found a wealth of information on his website.  Improving and strengthening Medicare is on the top of his political agenda.  He feels that Medicare will eventually go into the red due to the enormous strain of the soon retiring baby-boomers.  Many bills have gone through congress attempting to reform Medicare, and make it more affordable for seniors.  Most of the proposed legislation was shot down or was passed mostly because of the benefit to HMOs and other groups.  The 2003 Medicare Prescription Drug bill, he goes on to say, Created a number of problems for seniors in America.  Reid has always supported the addition of prescription drug coverage under Medicare; however, he opposed the final version of this bill.  For reasons, such as, it would give huge money to special interest HMOs and drug companies.  In addition, the legislation would create a new drug program that is deeply flawed and unnecessarily complicated. 

         Despite his efforts to prevent the bills passage, the legislation passed and will be taking effect soon.  Reid wants to let Nevadans know that he is committed to help them take advantage of the new drug benefit in every way possible.  Also, he wants Nevadans to know that he will oppose any bill that will undermine the integrity of Medicare.  With that, Reid wants seniors to step-up and join interest groups and petition bills that would affect them adversely.  He is committed to the fact that seniors, and people with disabilities should come before special interests.

         The proposed legislation, the Meeting Our Responsibility to Medicare Beneficiaries Act (S.18), best reflects his priorities.  The bill, if passed, would lower the cost of prescription drugs for seniors and people with disabilities.  In addition, it would eliminate the $10 billion “slush fund” for HMOs and invest that money to lower Part B premiums.  Finally, it would ensure that retirees can keep the good coverage they have now.  Reid strongly supports the bills passage, due to the benefits it would deliver to seniors.  As you can see, Senator Reid cares for the people and especially the social programs that affect them.