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Criticism of Record Medicare Increase Tempered by
Holiday Weekend Announcement
"Body Blow" to those on fixed income - Medicare
Rights Center President
Sept. 7, 2004 The increase in Medicare charges
for 2005 that were announced Friday just as a long holiday weekend
began drew new criticism aimed at the Medicare Modernization Act but
most of the negative reaction came from parties who normally oppose
administration policy. The timing may have blunted criticism from many
off for the weekend. This record high 17.3 percent Medicare premium
jump is a body blow to millions of older Americans living on fixed
incomes, said Robert M. Hayes, president, Medicare Rights Center of New
York.
Older Americans already are staggering under the
relentless increases in the cost of prescription drugs. More older
Americans will face harsh choices in meeting basic human needs health,
food and housing. Social Security increases for older Americans are
likely to be less than three percent in 2005, added Hayes.
Stewart Grabel, ombudsman for the the Pima (AZ)
Council on Aging, told the Tucson Citizen that the news just proves what
advocates for seniors have been saying since the Medicare bill was up
for a vote - "the devil is in the details."
"What we said when the Medicare Modernization Act
came out is that everybody is talking about the new drug coverage
benefit, which isn't that great to begin with because it doesn't control
the costs of drugs," Grabel said. "Then if you take a step back, what
(the act) is doing is again shifting the costs in the form of increased
co-payments and deductibles back to the seniors. That got no press at
all back then."
There are subsidies to pay the Medicare premium for
the poorest Medicare beneficiaries, Grabel said, "but if you're at about
$1,000 a month, that's going to be $78 of your income that's going to go
to Medicare even before you get to the co-pays and deductible." (Tucson
story
Click Here)
Presidential candidate John Kerry said, George
Bush socked seniors with a 17 percent increase in Medicare. What's right
about that? That's the biggest increase in Medicare premiums in the
history of the program. Raising Medicare costs -- that's W and that's
wrong. Wrong choices, wrong direction. It's time for a president who
will lead America in a new direction.
We're going to set a new direction for America,
said Kerry. We're going to get health care costs under control. And
America will stop being the only advanced nation in the world which
fails to understand that health care is not a privilege for the wealthy,
the connected, and the elected, it is a right for all Americans.
Edward F. Coyle, executive director, Alliance for
Retired Americans, said "This record-breaking increase in Medicare
premium payments is yet again further evidence of the Bush
Administration's callous disregard for the well-being and retirement
security concerns of older Americans. Seniors on fixed incomes are
caught in an ever-tightening squeeze and are today paying record-high
prices for gasoline, milk, prescription drugs and, now, doctor visits.
"It's clear George Bush continues to favor the
interests of drug companies and HMOs over those of hard-working older
Americans. He's made clear his choice and come Election Day seniors will
make their voices heard, continued Coyle."
The U.S. Department of Health and Human Services
said late Friday that Medicare premiums and deductibles will increase in
2005 in line with the actuarial forecast released in March in the
Medicare Trustees Report.
The monthly premium paid by beneficiaries enrolled
in Medicare Part B, which covers physician services, outpatient hospital
services, certain home health services, durable medical equipment and
other items, will increase $11.60 from $66.60 in 2004 to $78.20 in 2005.
The primary contributing factor to the increase in
the Part B premium, which accounts for approximately 80 percent of the
increase in benefit costs, is higher payments in Medicare's traditional
plan. Additionally, payment rates for physicians will increase by 1.5
percent, preventing a 4.5 percent reduction that might have threatened
access to high-quality services, according to an HHS press release.
"The new premiums reflect an enhanced Medicare that
is providing seniors and people with disabilities with strengthened
access to physician services and new preventive benefits, such as the
new 'Welcome to Medicare' physical and screening exams, as well as
improved Medicare Advantage plan choices that reduce beneficiaries'
health care costs," said Dr. Mark McClellan, administrator of the
Centers for Medicare & Medicaid Services.
The 17 percent increase in Medicare premiums is the
largest increase in the 40-year history of the program, according to the
Associated Press.
For Medicare Part A, which accounts for 7 percent
of Medicare's 41.8 million beneficiaries, the 2005 deductible will
increase $36 to $912, up from $876 in 2004. Medicare Part A pays for
inpatient hospital, skilled nursing facility and some home health care
costs.
HHS noted that
Medicare premiums and deductibles are updated each year in accordance
with formulas established by law. Current regulations provide that the
federal government assume approximately 75 percent of the cost of Part B
benefits; the Part B premiums paid by beneficiaries cover the
difference. |
