http://blog.aflcio.org/2007/01/02/medicare-changes-increase-costs-move-closer-to-privatization/Medicare Changes Increase Costs, Move Closer to Privatization
by James Parks, Jan 2, 2007
The Bush administration’s Medicare prescription drug plan has been inadequate to cover the needs of millions of America’s seniors, with its donut hole, which requires beneficiaries to pay large amounts out of pocket for necessary medications.
But now it appears that changes taking place this month in the Medicare program could push the program closer to privatization and further away from fulfilling the needs of seniors. According to Dianna Porter, policy director at the Alliance for Retired Americans, which represents more than 3 million seniors, changes authorized by the legislation could further dismantle the Medicare program, which provides health care for 42 million senior and disabled Americans.
Not only will some people find their benefits have changed, but others may find they are no longer eligible for the level of coverage they received this year. Many Medicare Part D plans—the prescription drug benefit—will be changing which drugs they cover, their pharmacy networks, premium amounts, deductible amounts and how much they will pay when recipients reach the donut hole. The deadline for signing up for the prescription drug plan was Dec. 31.
The biggest change, though, is in the monthly premium for Medicare Part B, the section that provides coverage for doctor and other outpatient services. The Part B premium will increase by 5.6 percent from $88.50 to $93.50 a month—or even higher, if Congress does not implement a reduction in Medicare payment rates for doctors. If Congress does not, which is likely, then the monthly premium will be even higher. With this increase, the monthly premium will have doubled since 2000.
Porter says the combined cost of the premiums for those seniors who participate in both Parts B and D will take about 11 percent of the Social Security benefit the average beneficiary receives in 2006. The costs of the premiums are increasing more rapidly than Social Security benefits, leaving seniors with less to spend on other non-health care necessities.
FULL story at link above.
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