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Saving Medicare

March 3, 2008
Weekly Columns

"Entitlement reform" has become a popular phrase over the past few years. As America's baby-boomer population reaches retirement age, the issue has gotten a lot of attention. There is serious reason to be concerned, considering more individuals are becoming eligible to receive Medicare and Social Security benefits. With fewer people working and paying into the benefit system, the revenue base to pay for retirees' benefits is getting smaller by the day. For this reason, Medicare must be reformed and put on a path to economic stability so that future generations can enjoy the security of health care in their retirement years.

Following the President's lead to reform and save Medicare benefits, House leaders have introduced H.R. 5480, the Medicare Funding Warning Response Act of 2008. First, the proposal addresses the need to reform medical liability laws and put the patient's priorities above those of trial lawyers. In the past few years, the cost of liability insurance has skyrocketed. This needs to be addressed in short order. American workers deserve to have access to quality care that serves their interests first.

The bill also focuses on continuing Medicare coverage while creating long-term protections that will bolster the economy. The legislation meets that requirement by creating an $80,000 income cap for Medicare recipients. This change will save $900 million dollars in 2013 and provide an estimated surplus of over $3 billion dollars after the first five years. This will protect our economy and save taxpayer-funded benefits and prescription drug programs for our neediest, low-income seniors.

The Medicare Funding Warning Response Act will also direct the Department of Health and Human Services to begin allowing value-driven competitors into the Medicare marketplace. The bill calls for the adoption of innovative health technology, such as electronic prescriptions and medical records and will direct competitors to be up-front with their pricing information. By creating the necessary incentives for competitors and encouraging them to offer low-cost, quality health care to patients - everyone wins. This legislation is definitely a step in the right direction towards saving Medicare for future generations.

Escalating costs of medical technology and health care continue to squeeze American consumers. And with large numbers of baby boomers retiring and enrolling in Medicare, the situation promises to become even more challenging. This legislation will go a long ways towards stabilizing Medicare and making sure that it is available to future generations of American retirees. Congress needs to set aside partisan differences and work together to make sure it becomes law.

Issues:Healthcare