Though they won't take effect until 2017, the Medicare changes proposed by president Obama could have a substantial impact on future beneficiaries. The recommended changes include:
- For new beneficiaries:
- A $100 copay for home health care, unless you're coming off a stint in a nursing home or hospital
- A required deductible if you sign up for significant Medigap insurance
- A higher yearly deductible for outpatient services
- For beneficiaries falling into the high-income bracket:
- Greater monthly payments for prescription coverage and outpatient services
In a recent speech, the president outlined his proposal for reducing the national deficit—a plan that includes trimming some of the fat off of federal programs such as Medicare and Medicaid.
The suggested changes to Medicare mainly target new and higher-income beneficiaries and, together, they are projected to cut $248 billion in govenment spending.
Couple these cuts with proposed reductions to Medicare payments for medical professionals and pharmaceutical companies, and the outlook of health care for the elderly may seem a bit bleak.
Max Richtman, President and CEO of the National Committee to Preserve Social Security & Medicare says that the suggested plan simply dances around the true problem, "Raising premiums, deductibles, and out-of-pocket costs for seniors doesn't address the real challenge facing our nation but merely shifts costs to retirees who are losing an increasing share of their Social Security checks."
But, in a published reaction to Obama's proposal, the AARP points to two key wins for seniors; the Medicare retirement age would remain at 65, and Social Security would not suffer any cuts. They also point out that the, if implemented, the plan would not impact the elderly as much as it could have.
Obama's proposal is far from becoming a reality—it must first face the gauntlet of a Congress staunchly opposed to the tax increases the president has linked to the Medicare changes.