by Steven R. Eastaugh
Candidate for Congress
"The sky is falling in and we know how to stop it," say Congressional Republicans as they discuss Medicare.
But wait a minute, the plan they propose for Medicare was constructed under the leadership of Newt Gingrich who on October 24, 1995 noted, "...we didn't get rid of it (Medicare) in round one because we don't think that's politically smart...But we think it's going to whither on the vine..." And Gingrich is not alone. How about this statement from Bob Dole who the same day the Speaker made his "withering" commented. "I was there, fighting the fight, one of twelve, voting against Medicare in 1965...because we knew it wouldn't work." Talk about foxes guarding the hen house!
Not surprisingly, my opponent stands full square with Speaker Gingrich. He should be ashamed of himself. Here is the real story.
There has, in fact, been growing pressure on Medicare Part A, the part of the system that pays for hospital care. A major reason has been the increased use of home care as the result of moving patients out of hospital more quickly. But this is not the first time that changes in the broader health care system have put pressure on Medicare. Each time Congress has made adjustments and seniors have continued to get the care they need. Once again the Medicare Trustees have issued a warning that adjustments must be made. That report was, in fact, signed by three members of President Clinton's cabinet. But those cabinet members did not say the system was in such crisis that immediate draconian measures were necessary.
The fact is that the Clinton balanced budget proposal extends solvency of Medicare for another ten years. And it can be done without increasing the out-of-pocket expenses of seniors, putting the squeeze on doctors and hospitals, or weakening the Medicare program. That time period permits an independent commission to recommend changes much as an independent commission proposed changes to the Social Security system in the early 1980's.
Why the intense pressure from the Republicans now? They want to rob the Medicare piggybank to pay for tax cuts to the wealthy. And the impact. If the current GOP proposal were adopted this year, by next year, the average couple on Medicare will pay an additional $264 to pay for that tax cut.
Let's be very clear. The Republican Party has opposed Medicare for years. On July 10, 1995, House Majority Leader Dick Armey noted, "[Medicare is] a program I would have no part of in a free world."
The current Republican plan would, in fact, have a number of very serious long term negative consequences. First, there will be enormous pressure on hospitals in both inner city and rural areas. Second, the plan would change some consumer protections which prevent doctors from overcharging seniors. Third, what the Republicans have characterized as giving consumers more choice is, at best, disingenuous. The fact is that seniors currently have full choice of health care providers and health care plans. What the Republicans bill as more choice is really a virus that will infect the entire Medicare program. That is what Speaker Gingrich was referring to when he spoke of Medicare's traditional program's withering on the vine.
Here is what would happen. Healthier seniors would move into lower-cost managed care plans. Less healthy seniors would remain in the traditional program with their own doctors who they trust to work unambiguously for the patients' interests. But the seniors in the traditional plan would find their premiums forced way up by this adverse selection process. The result: The traditional program will disappear exactly as Mr. Gingrich implied .
There are changes in the current Medicare program that make sense. Medicare operates with great efficiency. More than ninety-five cents of every dollar for Medicare actually goes for health care . Private Medicare supplement plans through groups put, on average, only ninety cents into health care and the individual supplemental plans average only eighty cents for health care. But Medicare probably should increase their costs a little to provide better protections against fraud and abuse. An added one cent would do quite nicely. That still makes traditional Medicare the best deal in town.
But the real answer to the Medicare problems is universal health insurance. Until every American has health comprehensive health insurance, changes to one part of the health care financing system will impact other parts.
This article was submitted by the candidate and published
without editing or comment.
EASTAUGH FOR CONGRESS
ADDITIONAL INFORMATION:
Albert P. Cohen (410) 632-9820
http://www.web-span.com/eastaugh
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Berlin, Maryland 21811
(410) 641-3033
June 28, 1996 EASTAUGH FOR CONGRESS All Rights Reserved