Know Medicare Terms And Players
By D. S. Mitchell
The Players
The seven people below, plus lobbyists, private citizens and trade organizations are expecting a big fight over entitlement programs. Only congress can make major changes to Medicare. And with the GOP majority in Congress, entitlements are in real danger.
Donald Trump:
Trump campaigned he would not cut Medicare or other public health programs. But a recent change to his website and his full support of The American Health Care Act makes those promises doubtful. The AHCA is a bill constructed and promoted by Paul Ryan. A plan Ryan and Trump claim will “modernize” Medicare. The Trump website suggests the changes are to deal with “challenges” created by the retirement of the baby boom generation. Trump will be under pressure from congressional Republicans to back major changes to Medicare. Trump is currently, supporting massive cuts to Medicaid.
Mitch McConnell:
Senate Majority Leader champions the rollback of federal support for social programs. He has proposed significant changes to Medicare, such as raising the eligibility age. He favors slashing Medicaid across the board.
Paul Ryan:
Ryan is Speaker of the House of Representatives. He wants to repeal the Affordable Care Act. He also wants to “overhaul Medicare”. Ryan wants to turn the Medicare program into a premium support system. Such a system would give people a fixed amount of money to buy private insurance.
Tom Price:
Price is a former Georgia congressman, selected by Trump to be Secretary of Dept of Health and Human Services. Price like Ryan advocates adopting a premium support system for Medicare. Many observers warn that such a system could end the guarantee of certain government provided benefits for seniors.
Orin Hatch:
Hatch heads the Senate Finance Committee. The committee oversees Medicare. Hatch believes that “real reform” must be made to Medicare to make sure the program is not “condemned to bankruptcy.”
Charles Schumer:
Senate Minority Leader promised that Democrats from all states will “link arm in arm” to protect Medicare. He swears that “Republicans will not succeed” in efforts to destroy the program.
Nancy Pelosi:
House Minority Leader is an opponent of Republican efforts to change entitlement programs. She recently blasted Republican plans to end the Medicare guarantee and vowed to block any overhaul.
The Terms
Medicare Trust Fund:
Medicare payroll taxes go into a single fund. Part A funds hospitals and rehabilitation facilities. Part B pays for doctors’ services and Part D covers prescription drugs, both are paid from premiums from beneficiaries and general tax revenues.
Trust Fund Solvency:
This refers to whether the Part A fund is enough to pay the hospital expenses of beneficiaries going forward. The fund is projected to be able to pay full benefits through 2028. Beginning in 2029, Medicare funding will be reduced by 13%.
Premium Support Program:
Under the current proposal, rather than a guaranteed benefit package, the government would give a fixed dollar amount to users. Those users could then choose among competing private health insurance plans. Supporters say this would stimulate greater price competition among insurers and ultimately cut consumer costs. Opponents claim it will leave many people unable to pay for care.
Voucher System:
Opponent’s often use this term instead of premium support. Both refer to the same thing (also, sometimes called “tax credits”). Critics say vouchers would not buy as much health care for beneficiaries as the current system provides. Furthermore it would shift more costs to seniors without guaranteeing benefits when they are at their most vulnerable.
Privatization:
This refers to an approach to move Medicare beneficiaries into private health insurance. Currently, about 1/3 of Medicare beneficiaries are enrolled in private Medicare Advantage plans. However, these plans must meet the guaranteed benefit standards of traditional Medicare.
Calamity News and Politics
Calamity News and Politics is an educational resource on current happenings in the U.S. political arena. CNP tries to allow the story to tell itself, but sometimes, when amped up on caffeine and breaking news I will add analysis and comment.
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References
AARP.ORG/WHYMEDICAREMATTERS.
