Criticism of record
Medicare increase tempered
by Holiday Weekend announcement..."Body Blow"
to those on fixed income -
Medicare Rights Center President
Washington, D.C. and
New York, NY,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.