Medicare rising as primary aim in U.S. "fiscal cliff" talks



By David Morgan

WASHINGTON |
Wed Dec 5, 2012 5:52pm EST


WASHINGTON (Reuters) – With opposition Democratic and Republican necessity skeleton increasingly focused on Medicare, experts contend a dual sides could be circumference toward common belligerent on critical changes to a renouned health word module for seniors and a disabled.

None of a changes are positive and any specific decisions would come usually after fortitude of a “fiscal cliff,” a multiple of taxation hikes and spending cuts that’s pulling a discussion.

But several ideas that have circulated among policymakers for years are frequently mentioned as a parties get some-more serious, and ever some-more specific, about how to control a bursting costs of supposed desert programs including Medicare.

The proposals many mostly discussed that would directly impact Medicare’s 52 million beneficiaries are some-more means-testing, definition aloft costs for wealthier retirees, and lifting a Medicare eligibility age from 65 to 67.

Other proposals on a list would revoke payments for hospitals, nursing homes, drug makers, insurers and physicians.

Medicare, a $590 billion-a-year module prolonged seen as an chaste third rail in U.S. politics, has been protracted yet frequency trimmed. A change in eligibility would not change normal benefits. But Medicare would not be accessible to all comparison adults aged 65 and comparison for a initial time given a program’s origination in 1965.

While Medicare has challenging allies who conflict module changes for beneficiaries, including magnanimous Democrats, vast segments of a open and AARP, a absolute run for comparison Americans, deeper sacrifices have changed closer to a core of a open discuss over a bill deficit, with some tip Democrats withdrawal a doorway to concede ajar.

Cutbacks, along with spending reductions for other medical programs including a Medicaid module for a poor, could furnish $400 billion to $600 billion in assets over 10 years as partial of a deficit-cutting agreement Congress and a White House contingency strech to equivocate a supposed mercantile cliff.

Potential Medicare savings, total with a $716 billion in reduced remuneration increases for medical providers in a module enacted underneath President Barack Obama’s medical overhaul, could come to some-more than $1 trillion over a subsequent decade.

“It’s going to strike everybody,” pronounced Joseph Antos, health consultant with a regressive American Enterprise Institute.

Senate Minority Leader Mitch McConnell, in a Wall Street Journal interview, pronounced an boost in a Medicare eligibility age would be a exigency for Republican eagerness to accept aloft revenues — yet not aloft taxation rates — as partial of a deficit-reduction deal.

Asked during a radio speak on Tuesday about McConnell’s proposal, Obama pronounced that McConnell and John Boehner, a Republican House of Representatives speaker, “know that I’m prepared to make some tough decisions on some of these issues,” fast adding that he can’t ask Medicare beneficiaries “to scapegoat and not ask anything of higher-income folks.”

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One of a president’s closest allies in a Senate, Illinois Democrat Richard Durbin, broached a theme final week in a discuss propelling his left-leaning associate celebration members to accept a idea of Medicare changes.

“If anybody wants to speak about a after eligibility age for Medicare, what we wish to hear is a declaration and pledge that people … will have entrance to affordable medical and insurance” before they strech a age, Durbin said.

Some Medicare defenders have put brazen skeleton to revoke a program’s spending but inspiring beneficiaries. The Center for American Progress, a magnanimous consider tank, has due pleat scarcely $40 billion in medical costs simply by requiring product-makers, use providers and insurers to contention to rival bidding.

Alice Rivlin, a White House bill executive underneath President Bill Clinton and a heading voice for bipartisan solutions in a stream necessity debate, says there is potentially a lot of common belligerent between Republicans and Democrats, quite on healthcare. “But during a moment, it’s tough to know what they’re articulate about. All we’re unequivocally saying is numbers,” she said.

The contours of a medical discuss have been made in partial by Obama’s 2013 bill proposals, that would trim some-more than $350 billion from Medicare and Medicaid, and vague final for $600 billion in medical reductions from House Republicans.

Raising a age of eligibility could save $148 billion in Medicare spending over a subsequent 10 years, according to a non-partisan Congressional Budget Office. But critics contend a change would usually change costs onto employers and beneficiaries, some of whom competence have to abstain coverage.

The assets would paint a 50 percent boost over a $300 billion in Medicare cost-cuts summarized in Obama’s 2013 budget, that officials report as a basement for a White House bid to revoke medical and desert spending by $400 billion over 10 years.

The Obama bill would save $28 billion by augmenting Medicare premiums for wealthier beneficiaries. But a lion’s share of assets would come from changes in payments to drug makers and providers.

Meanwhile, Republican lobbyists, looking to assistance medical providers equivocate serve Medicare cuts, are also pulling to harmonize Medicare deductibles and co-insurance rates, and presumably extent a use of private word famous as Medigap, in sell for substantiating a roof on customer out-of-pocket costs. There are opposite deductibles and co-insurance rates for opposite segments of a module and a pull is to settle a singular deductible and singular co-insurance rate, presumably during aloft rates than people compensate now.

“The volume of a spending-reduction targets will establish how distant they go in terms of spending cuts and some-more elemental changes to Medicare, and secondarily what they do to Medicaid,” pronounced Drew Altman, boss of a non-partisan Kaiser Family Foundation.

“Whatever they do, they’ll call reform, since it sounds better. But unequivocally they’re articulate about slicing spending.”

A Harvard research of polling information found that 47 percent of Americans preference a aloft eligibility age for Medicare and 54 percent are in preference of some-more means testing, suggesting that lawmakers who are adult for re-election in 2014 might not humour severely by altering a equation for Medicare beneficiaries.

“In a universe where things are not extravagantly renouned in general, these are a slightest unpopular things we can do,” pronounced Robert Blendon of a Harvard School of Public Health. “It’s a protected road.”

(Editing by Fred Barbash and Eric Beech)

Via: Health Medicine Network