Medicare to base fees on income

[Herman Munster]

http://www.miami.com/mld/miamiherald/15478076.htm

WASHINGTON - After 41 years of charging most older Americans the same price for the same care, Medicare will require affluent seniors to pay higher monthly premiums for coverage of doctors' visits, diagnostic tests and outpatient hospital care beginning in 2007.

A little-known provision of the 2003 Medicare Modernization Act calls for an estimated 1.5 million seniors to face higher premiums, from 10 to 55 percent over the next three years, if they have income of at least $80,000 a year, or $160,000 for married couples. Seniors taking in more than $200,000 and couples making more than $400,000 will see their so-called Part B premiums rise the most.

The move, designed to help shore up Medicare's shaky finances, has enraged many because it was adopted without public debate. A Republican-led conference committee added the measure to the Medicare bill even though neither the House of Representatives nor the Senate version contained it.

Medicare, the national health plan for the elderly and people with disabilities, faces an uncertain future because of rising healthcare costs, a growing number of beneficiaries who utilize more services and a dwindling tax base to support the program. The premium increases are expected to boost revenue by about $7.7 billion from 2007 to 2011, and $20.8 billion from 2007 to 2016.

[napi21]

1. I'm going to think about this some more, but at first blush, I don't

think it's a bad idea. If I was making $80,000/yr I don't think I'd have a problem paying a little more for my permiums! BUT, I certainly understand why the wealthier people are upset thatthere was NO public discussion about this!

[blonndee]

2. I think I'm going to end up agreeing with you-wish there were more

discussion, but this doesn't sound too bad to me. My late grandmother was pretty well-off; not wealthy but had more than enough. She was always reluctant to even use her Medicare benefits because she didn't need to really, and she thought that others needed it much more than she did. She was such a good Democrat. The only one in my family besides me that I could turn to since the country went ass-up. I miss her terribly.

[napi21]

3. I also suspect those who have quite a bit of $$ also pay for

private insurance as a fill in, at least. I know my mother, even though she didn't have much$$, always paid for suplimental insurance through Blue Cross. She was grandfathered into the policy she had, and it cost somewhere around $85/mo. if I remember right. It covered EVERYTHING that medicare didn't. Blue Cross eliminated those policies many years ago, and said since she had hers for so long, it would remain in effect until she passed away. She died in 2000.

[Roland99]

4. This is just the beginning of what needs to be done to curtail costs.

The Medicare and Social Security obligations into the future are a huge weight on the financial stability of this nation.

[muesa]

19. The Huge Weight on the Financial Stability of this Nation.

comes from:

1. The preferential tax rates on incomes above $250K - compared to the rest of the industrialized, western world.
2. The de facto absence of an inheritance tax.
3. The preferential tax rates on capital gains.
4. Issuing public debt to finance the war in Iraq.
5. The trade deficit - exacerbated by massive imports of cartelized petroleum, and by "slave labor"-"prison labor" conditions of many of our trading partners (i.e., the Wal-Mart race to the bottom)

[Horse with no Name]

5. But if you think about it

It still isn't fair.
It is designed for the higher income who are SAVING money on tax breaks--so in essence, their money is a wash.
It is, again, the middle class that will be footing the bill.
They won't be receiving tax cuts to compensate for the costs, and if I know Republicans, my guess is that buried deep in this bill, there are gouges to them in store.

[bananas]

6. The problem is that turns it into a welfare program

and that is the first part of the plan to kill it.

"Medicare is not a welfare program. That is, personal income and assets are not considered in determining an individual’s eligibility or benefits. Medicare coverage is similar to the coverage that private insurance companies offer: Medicare pays a portion of the cost of some medical care and the beneficiary — the patient — assumes the cost of deductibles and the co-payments to healthcare providers."

http://www.ftc.gov/bcp/conline/pubs/services/apact/apact07.htm

[SoCalDem]

11. Yep.. this move splits it into halves

the haves and the have-nots.. guess which half has more power? and guess which tends to be greedy bastards..

as they see their fees double/triple etc, they will start a campaign to punish the "freeloaders" who were too lazy to work hard and invest and who were too stupid to pick rich families into which to be born :sarcasm: (sort of)

[sandnsea]

20. Exactly

It is so disheartening that we not only have to fight to keep our programs, but we have to fight to educate people so they understand why these programs are the way they are, and that they understand what the right wing is really up to which is always to take steps towards ending social programs. They're a patient lot, I'll give them that.

[serryjw]

7. Can't understand WHY the republicans did the

right thing. I always belived that SS & Medicare should be 'means tested'. First MOST wealthier are NOT going to a doctor that takes medicare payments, so it's a moot point.
quote......
Medicare Part B

Medicare (Part B) Part B is a voluntary medical insurance program that covers doctors' services (excluding routine physical exams), outpatient hospital care, physical therapy, ambulance trips, medical equipment, diagnostic tests and other medical services, such as lab tests and physical and occupational therapy. Some preventive services such as mammograms and flu shots are also covered.

Part B also helps pay for durable medical equipment such as oxygen equipment, wheelchairs, and other medically necessary equipment prescribed by your doctor for use in your home. Other items covered by Medicare Part B include:

• Arm, leg, back and neck braces

• Medical supplies such as surgical dressings, splints and casts

• Breast prostheses following a mastectomy

• One pair of eyeglasses with an intraocular lens after cataract surgery

Medicare Part B pays for various kinds of durable medical equipment in different ways. The Helpful Contacts section of www.medicare.gov will have the phone number of your Durable Medical Equipment regional carrier where you can call for more specific information.

end quote......
Since part B is voluntary, if they don't increase the cost for wealthier americans than they will have to REDUCE the services to the poorest. This could be the difference b/t living and dying.

http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,4132,P1990,00.html

[MysteryToMyself]

8. Is this a republican blog?

Whoa Nellie. This attitude is one reason the Democrats don't get elected. You sound like republicans. The republicans always help the rich and big business. The democrats are supposed to help the middle class and poor.

We have all contributed to Medicare since it began about 25 years ago so we could have reasonable priced health care when we retired. It is charged on every dollar earned. Even the multi million dollar salaries pay a contribution to Medicare.

Why is there never a complaint of the cost of health care? It is always the programs that need health care that are criticized.

The Bushites passed a bill that no one could make the insurance companies, the physicians or the pharmaceutical companies bid to give services to Medicare to get the business. So they have free reign to charge what they want.

They have to bid for Veterans and their cost are a lot more reasonable.

It isn't the our health care that is costing so much, it is the profits made for Wall Street that is costing so much and ruining the middle class.

Once they start means testing then Medicare will go the way of Welfare. The Bushites know that and are working with the insurance companies to make it happen. For God's sake, the insurance companies have 22 trillion in reserve.

[MysteryToMyself]

9. People need to protect the programs, they will need them too.

When a person retires those expenses keep on coming in. You still eat, need heat and a car, satellite, telephone,pay property and other taxes....all those expenses we pay now. You still have the same expenses, but most are making at less than half of what they were making while working.

A moderate house sells for a lot of money. If you downsize, then it could cause your premiums to go up.

They are already talking about cutting Social Security for those who have 401ks.

Most people are going to quit saving, because now they say we need a million dollars to live decently after retirement. The financial blogs say we need $300,000 for out of pocket medical expenses after retirement and that is if you have all the Medicare insurances.

They are going to expect people to get reverse mortgages on their homes to pay for their medical care. They say few will be able to leave anything to their children.

Most people who have quit saving and investing say that they are going to have to work until the day they die anyway so they are going to spend their money. They may be right.

I just think it is dirty for them to ask us to pay in extra to fund the baby boomers so we won't be a burden to the younger generation, then decide they don't want to pay it back, because they would rather give tax cuts to the wealthy. We have paid in a lot extra since 1983 but they don't care. They have made it to where it is going to be hard to pay it back.

At least Clinton was paying down the deficit, so it wouldn't be hard to pay back Social Security as people retire.

They have convinced the younger generation they will get rich in the market. They plan to privatize Social Security for them. The reason the stock market goes up is because there is an increase in profits. The reason there is an increase in profits is because PRICES have went up. Prices would have to go up every year for infinity to cover everyone's retirement. Most will not make enough from investments to pay the higher prices. 90% of the stocks in the markets are owned by the rich. That leaves 10% for the rest of us. They are setting the younger generation up for another crash at some point. Privatization will probably work for awhile until they have dismantled Social Security. They have kept us holding on to our 401k, because (they say) it will go up soon. I would have been better off not investing. Half the money made in the market will go to profit Wall Street and the insurances companies who will sell required annuities.

[OzarkDem]

10. Agree, there are trolls a-plenty here these days n/t

[zuzu98]

12. So...

...if we don't agree with you, now we're "trolls" or "Republicans"? Sheesh! The OP was just passing along some information and another poster made the valid point that if some sort of means testing isn't done at the upper level, benefits for lower-income people will most likely be cut.

What other group labels and denounces those who dare to assert a different view or tries to quash reasonable discussion or debate? Hmmm....thinking...thinking....

[ikojo]

13. One of my friends who comes from a wealthy

family thinks this is a good idea. I don't think it's such a good idea. As soon as Medicare becomes means tested it will become lumped together even more so with other so called entitlement programs and demonized as "welfare" for the lazy old who weren't wise enough during their money earning years to put aside funds to pay for health care in their old age. I think it's the universal nature of Medicare that makes is popular across all socioeconomic strata. The wealthy don't feel like they are on welfare and the poor aren't shamed into having to prove they are "worthy" of receiving Medicare.

This more than anything is the beginning of the end of Medicare as we know it.

[MysteryToMyself]

14. I apologize, you are good people, you are Democrats

I was furious when I read about the increase. We don't want to make the poor suffer more, and we need to be fair to everyone. If you have a salary of $20,000 or 20 million the same percentage is taken out for medicare. Millionaires have paid thousands for it. And the employer matches it There is no ceiling on salaries for Medicare contributions.

I read up on it and the increase is for those who make over $180,000 as a couple. Then it is progressively higher. But, it also had a clause that allowed for inflation, but they took that out this week. So if in 10 years $180,000 buys what $100,000 does now, then you still are charged extra if you earn $180,000.

I was wrong about Medicare being 25 years old. It is 43 years old. We have paid in $40,000 our part to fund it.

The truth is Medicare has been totally ruined by the Bushites and a few DINO Democrats. This new increase was added to the bill in the middle of the night before it was signed the next day.

The prescription drug program is a joke and was not written for the elderly to have affordable care. They messed up a lot in implementing it and sent the wrong checks to the wrong people. It was chaos.

Google Medicare and click news and then the next time click web, if you are interested. There is a lot of info on the web and the news. There is a lot going on with it.

I roughly figured what it would cost to have A and B Medicare and it would be $100. I suppose a couple would pay $200. Then you need Medigap or you would be hit hard by hospital visits. that is $63 to 300 in our area. So if you take the cheapest medigap that would add up to $326 for a couple. There are about 12 policies. Then you need the prescription drug program. I haven't looked that up lately, but it was $78 for just my husband when I put it in. I have read that some are cheaper than that, but I listed the medicine he takes. Double that for a couple and that is $472. Then you still have the doughnut hole where you pay around $2500 after you hit $2500 in drugs. There is a deductible too before that too. A lot of people only get around $14000 as a couple on Social Security. That will be too expensive for them to buy. They may put them partially on medicaid. I shouldn't have posted before I knew what I was talking about.

Here are a couple of interesting links:

http://www.prleap.com/pr/47058/

Excerpt:

http://health.theledger.com/article/20060908/TOPSTORY/1740/-1/RSS2&source=RSS
Bush's Point Man On Medicare Plans To Resign

Dr. Mark McClellan, who as head of Medicare and Medicaid programs, orchestrated the problematic Part D, Doughnut Hole and signups for Medicare Part D, but retained the favor of the Bush Administration...

US Representative Pete Stark, a member of the Ways and Means Health subcommittee, was less charitable. He pointed out the looming implication of the "doughnut hole," a coverage gap that requires beneficiaries to pay 100 percent of their annual drug costs from $2,250 to $5,100. As the year winds down, more seniors will find themselves facing the coverage gap.
-----
(They are jumping ship like rats. They are scared the Democrats will win and investigate them.)

[MysteryToMyself]

15. Here is a chart of the projected costs of Medicare part B

There is a chart here that shows the charges for different income levels:

http://www.tscl.org/Newcontent/102743.asp

[Thickasabrick]

16. Thanks for the information. I was totally clueless about this

latest change.

Personally, if a retired couple is making over $200,000 a year - I don't see a problem with them paying 400.00 a month - it seems reasonable and it's about what my company projected private insurance would cost me in ten years when I retire.

I do want to see some change in the social security system. My mother has tons of money from investments and even though she only taught school a few years in her entire lifetime, she gets a social security check. She has been paid probably 300 times what she actually put into it - and she doesn't even need it.

There is just something blatantly wrong with that.

[bananas]

17. Listen

If your mother goes to a McDonald's, should she pay whatever for a Big Mac, or should they charge her based on her personal worth?
If your mother goes to an expensive restaurant, should they charge her based on her net worth, or should they charge all customers the same?

[Thickasabrick]

23. McDonald's or the expensive restaurant would quickly go out of

business if they did that.

Medicare would like to go out of business, but it can't. I don't see that as a good comparison really.

I don't want to see Medicare and Social Security become a welfare benefit. I also don't see why someone who rakes in over $600,000 per year should get a social security check over and above what they put in over their lifetime. I'm also not worried about them paying $400 per month for supplemental health benefits, whether it be through Medicare or through private insurance.

[LoZoccolo]

18. If people would argue benefits and drawbacks rather than...

...play troll police, we would have some very smart people here. I see a sprinkling of thoughtful posts on either side and then a bunch of people whining about how people disagree with them. I think it's all a part of lazy Internet syndrome, personally.

[GetTheRightVote]

21. I do not believe this could happen, it must go thru congress to be a law

Our system does not allow add on at a later date or it is not a law or enforcable right ???

:kick:

[madfloridian]

22. Sounds like huge raises for everyone...even the poorest.

http://www.tscl.org/Newcontent/102743.asp

Here is the scary part....and if you think this is ok then I am stunned.

Income Individuals
Under $80,000

Will go from $88.50 to 123.50 in 3 years. UNDER is the key word. If I interpret that correctly that means everyone. Cause everyone under 80,000 in retirement is most of the country. Retirement is usually fixed income.

Income Married Couples
Under $160,000

Same as above. And they don't tell you they are cutting amounts paid to doctors, amounts allowed for certain medical tests. They don't tell you that many seniors don't get quality medical care because Medicare doesn't cover it.

This has nothing to do with rich. This has to do with hurting the elderly even more.