President Obama, has always been know to be a promoter of our Medicare program, a system he feels deeply about. At this time though, he is suggesting reductions to the Medicare Part D system, the program that reimburses seniors for prescription drug costs, by reformulating the method by which it compensates for prescription drugs.
Obama can't have his cake and eat it too. His plan would cut access to prescription drugs for more than 46 million seniors citizens and make it more difficult and increase their costs.
The Medicare Part D program was passed under President George W. Bush in 2003 with a constraints on policy design covering the fee for service of Medicare. Medicare Part D was supposed to give participants two selections of value and choice, under the Obama plan the Seniors lose this choice.
Under Medicare Part D, individual insurers compete for golden agers business by offering different coverage plans. The insurers do work with pharmaceutical companies to bring home the bacon for the medications they will cover, keeps costs down requires competition.
Nationally, premiums have been $30 a month for four years, even as health insurance premiums have sky rocketed. Government officials estimated Part D plans would be about $61 a month by now and are far lower than expected.
Taxpayers are saving as well as noted by the nonpartisan Congressional Budget Office, and spending on Medicare's prescription drug benefit has come in 45 percent below budget Initiatives. It's the only part of Medicare that's keeping costs down.
Part D is producing excellent health results In a 2011 study, researchers at the Harvard Medical School, claim that seniors' well-being improved dramatically and hospitalizations was lowered as a result of Part D. Another study found that while prescription drug usage was up by 13 percent among seniors, thanks to Part D out of pocket prescription drug costs fell by 18. percent.
The conservative Republicans are worried about the increasing cost of medicare. Part D offers a guideline for other parts of medicare to follow by keeping competition and market principles in the spotlight.
On many occasions, President Obama and his administration has specifically targeted Part D for cuts. In his latest State of the Union address, the president hinted to "reduce taxpayer subsidies to prescription drug companies."
President Obama suggests requiring pharmaceutical companies to give back a set percentage of each prescription sold to seniors who are eligible for both Medicaid and Medicare assistance. Medicaid, the joint state federal program for the poor, already requires such rebates from the medication providers.
The White House projects this would save about $156 billion, but don't look for I want money back.
The fact is, these "rebates" are a really nice clone of government-imposed price controls. And as pharmaceutical companies try to compensate for their losses, the rebate plan would end up costing all seniors more.
Independent consultants from the Lewin Group found that the rebate system would increase Part D out of pocket costs for senior citizens ranging from 25 to 50 percent. The former Congressional Budget Office director Douglas Holtz-Eakin projects that premiums would rise anywhere from 20 to 40 percent.
Higher costs and fewer options with this plan are inevitable. A recent study by Joseph Antos of the American Enterprise Institute and Guy King, Medicare's former chief actuary, showed that Obama's rebate plan would limit health insurers from offering plans to low income senior citizens.
A Congressional Budget Office released a report last year that projected increasing prescription drug usage by 1 percent among Medicare eligible individuals results in a 0.2 percent decrease in overall medical spending on the Medicare constituents and going this direction would be a definite no, no.
Missouri's lawmakers shouldn't hesitate to tout this smart market-based policy reform in Washington. They must protect the state's seniors from Obama's attempt to undermine the Part D success story.
Obama can't have his cake and eat it too. His plan would cut access to prescription drugs for more than 46 million seniors citizens and make it more difficult and increase their costs.
The Medicare Part D program was passed under President George W. Bush in 2003 with a constraints on policy design covering the fee for service of Medicare. Medicare Part D was supposed to give participants two selections of value and choice, under the Obama plan the Seniors lose this choice.
Under Medicare Part D, individual insurers compete for golden agers business by offering different coverage plans. The insurers do work with pharmaceutical companies to bring home the bacon for the medications they will cover, keeps costs down requires competition.
Nationally, premiums have been $30 a month for four years, even as health insurance premiums have sky rocketed. Government officials estimated Part D plans would be about $61 a month by now and are far lower than expected.
Taxpayers are saving as well as noted by the nonpartisan Congressional Budget Office, and spending on Medicare's prescription drug benefit has come in 45 percent below budget Initiatives. It's the only part of Medicare that's keeping costs down.
Part D is producing excellent health results In a 2011 study, researchers at the Harvard Medical School, claim that seniors' well-being improved dramatically and hospitalizations was lowered as a result of Part D. Another study found that while prescription drug usage was up by 13 percent among seniors, thanks to Part D out of pocket prescription drug costs fell by 18. percent.
The conservative Republicans are worried about the increasing cost of medicare. Part D offers a guideline for other parts of medicare to follow by keeping competition and market principles in the spotlight.
On many occasions, President Obama and his administration has specifically targeted Part D for cuts. In his latest State of the Union address, the president hinted to "reduce taxpayer subsidies to prescription drug companies."
President Obama suggests requiring pharmaceutical companies to give back a set percentage of each prescription sold to seniors who are eligible for both Medicaid and Medicare assistance. Medicaid, the joint state federal program for the poor, already requires such rebates from the medication providers.
The White House projects this would save about $156 billion, but don't look for I want money back.
The fact is, these "rebates" are a really nice clone of government-imposed price controls. And as pharmaceutical companies try to compensate for their losses, the rebate plan would end up costing all seniors more.
Independent consultants from the Lewin Group found that the rebate system would increase Part D out of pocket costs for senior citizens ranging from 25 to 50 percent. The former Congressional Budget Office director Douglas Holtz-Eakin projects that premiums would rise anywhere from 20 to 40 percent.
Higher costs and fewer options with this plan are inevitable. A recent study by Joseph Antos of the American Enterprise Institute and Guy King, Medicare's former chief actuary, showed that Obama's rebate plan would limit health insurers from offering plans to low income senior citizens.
A Congressional Budget Office released a report last year that projected increasing prescription drug usage by 1 percent among Medicare eligible individuals results in a 0.2 percent decrease in overall medical spending on the Medicare constituents and going this direction would be a definite no, no.
Missouri's lawmakers shouldn't hesitate to tout this smart market-based policy reform in Washington. They must protect the state's seniors from Obama's attempt to undermine the Part D success story.
About the Author:
Learn more about Medicare insurance #1. Stop by Ron Guerin's site where you can find out all about Medicare Part D #2 and what it can do for you.
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