More Medicare pain

Posted on Sat, Sep. 11, 2004
Fixed?
More Medicare pain
Wichita Eagle
http://www.kansas.com/mld/eagle/news/editorial/9633034.htm

In Washington, D.C., bad news is often released on Friday afternoon, in hopes that it will get lost in the weekend shuffle. But the Bush administration's Friday afternoon, pre-Labor Day announcement of a 17.5 percent jump in Medicare premiums for 2005 -- the largest hike in the program's history -- got plenty of senior citizens' attention.


And they're not happy. The premium increase, from the current $66.60 to $78.20 a month for coverage of doctor visits and outpatient services, will affect some 42 million Americans.


Medicare officials put a happy spin on the news, arguing that the added costs will help pay for expanded services and coverage, and a beefed-up reserve fund.


But that doesn't ease the pain of seniors, especially those on fixed incomes, who are trying to meet basic needs in food and shelter while coping with soaring costs.


The Medicare hike is certain to wipe out the modest (3 percent or so) cost-of-living increase in their Social Security payments in 2005.


And the increase doesn't figure in the new prescription drug benefit -- for those who choose the program, add another $35 monthly premium to their health care costs starting in 2006.


Of course, all Americans, not just seniors, are paying higher health care costs: Family premiums in private employer-sponsored health plans jumped 11.2 percent in 2004, increasing the ranks of the uninsured (now at 45 million Americans).


In short, Americans are still getting killed on health care costs. And no relief is in sight -- even after a year of touted Medicare "fixes" that have ended up costing taxpayers many billions more than projected.


For that, thank Thomas Scully, the former Medicare chief who threatened a subordinate with firing if he revealed to Congress that the true cost of the new Medicare law would be $534 billion over 10 years, not $400 billion.


Mr. Scully should return $84,933 of his salary -- the amount that the General Accounting Office is recommending he be penalized for withholding crucial information from Congress.


It would be a small gesture, but an important one, in bringing accountability to Medicare costs.

For the editorial board, Randy Scholfield