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Medicare Battle Stalls Reform
Washington Times
December 7, 2007
Plans from Congress to pass a Medicare reform bill intended to lower monthly premiums for Medicare beneficiaries have been stalled by threats of a veto from the Bush Administration. The reform bill proposes cuts to Medicare Advantage, a government-subsidized program that provides extra services to beneficiaries through private insurers. The bill is predicated on the argument that government funding is putting too much money into the pockets of private insurers. Without a Medicare reform bill, the Medicare program is not apt to see improvements in the next year.
Congress backed away from Medicare reform this week in the face of pressure from the Bush administration.
Health and Human Services Secretary Michael O. Leavitt on Tuesday, in a letter to the Senate Finance Committee, said White House advisers would recommend a veto of any Medicare legislation that includes cuts to Medicare Advantage insurance plans.
Medicare Advantage is a supplemental health insurance program provided by private insurance companies to add medical services on top of government-provided coverage through Medicare.
The plans rely heavily on government subsidies in order to provide the extra services. About 8 million people are enrolled in the Medicare Advantage program.
Several advocacy groups, such as AARP and the National Committee to Preserve Social Security and Medicare, say government payments to the private insurers are too generous and end up forcing beneficiaries in traditional Medicare to pay higher monthly premiums.
Following the most recent veto threat, Sen. Max Baucus, Montana Democrat, and chairman of the Finance Committee, canceled a scheduled vote on legislation that would have cut payments to the private health plans.
"[President Bush] knows there's no Medicare bill if there's no Medicare Advantage cuts ..." Mr. Baucus said.
Earlier this year, the White House crushed children's health care legislation with a veto threat and an assertion that Congress is attempting to socialize health care.
Without a Medicare bill emerging from the Senate, there will not likely be any improvements to the program next year for consumers.
For instance, Senate lawmakers want to require doctors in the Medicare program to use electronic prescribing in exchange for their avoiding a reduction in Medicare payments.
This week a bipartisan group of senators led by Sens. John Kerry, Massachusetts Democrat, and John Ensign, Nevada Republican, announced the introduction of a bill that would give doctors permanent Medicare fee bonuses for acquiring and using e-prescribing systems.
Mr. Kerry referred to the Senate Medicare bill when he said that something similar to that bill is already in the works. It now appears he will have to move the bill himself.
E-prescribing is one area Congress and the Bush administration can agree.
"In my view, any new bill should require physicians to implement health information technology that meets department standards in order to be eligible for higher payments from Medicare," Mr. Leavitt said.
Health analysts contend that electronic record-keeping will reduce medical errors and could lower overall health care expenses.
But the number of doctors who are already using electronic records is only about 10 percent.
Unfortunately, that number is not likely to increase next year.
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