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Healthcare Reform May Lead to Medicare Collapse
While the President and Congress continue to push towards healthcare reform, one program that has been a mainstay of healthcare for seniors for decades is in danger of collapse. The Democrats in the Senate are planning to expand Medicare, but this planned expansion could potentially lead to the downfall of the program. Medicare is already in danger of bankruptcy and many healthcare providers feel they are even now not receiving adequate reimbursements under the program.
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The Democrats’ plan calls for uninsured individuals ages 55 to 64 to buy healthcare coverage under Medicare; this provision is part of the compromise reached in exchange for dropping the public option plan form the national healthcare agenda.
However, the plan is not agreeable to certain hospital and physician groups. In fact, the director of the Mayo Clinic noted that this expansion of Medicare would lead to "the financial ruin of hospitals and doctors across the country" because he claims Medicare underpays hospitals and physicians.
Overall, expanding the Medicare program could lead to an even larger tax increase and more government control of the healthcare system. According to the Heritage Foundation, "Enrollees would likely be higher users of medical services which would be reflected in higher premiums….To address this, the government may likely subsidize these enrollees, adding more cost to the taxpayers….Finally, Medicare is already fiscally unsustainable….This solution would only accelerate its doom."
Meanwhile, there is a question as to whether or not the healthcare reform plan will even pass in the Senate. Senator Joe Lieberman’s vote is critical to passing the bill, yet he has said he would vote with Republicans if the healthcare bill includes the provision to expand Medicare by allowing uninsured individuals aged 55 to 64 to buy Medicare coverage. A former Democrat, Lieberman is an independent who supported John McCain in the 2008 presidential election.
Lieberman told CBS: "Though I don't know exactly what's in it, from what I hear, I certainly would have a hard time voting for it because it has some of the same infirmities that the public option did. It will add taxpayer costs. It will add to the deficit. It's unnecessary."
Democrats contend Lieberman would support a Republican-led filibuster against the bill if it contained the Medicare provision or allowed the government to sell insurance in competition with private companies.
Meanwhile, President Obama hopes the bill will pass in the Senate before Christmas, but this would be unlikely if Lieberman joins the Republicans. In that case, Democrats would have to remove the Medicare provision from the bill.
While the Obama administration is pushing for a fast track healthcare reform bill passage, it is also trying to rejuvenate the economy. However, the administrations position on the state of the recession has caused some confusion. On December 13, two top White House economic advisers gave conflicting opinions Sunday over whether the recession has in fact ended.
"Everybody agrees that the recession is over," said Larry Summers, director of the National Economic Council.
"Of course not," countered Council of Economic Advisers Chairwoman Christina Romer in a separate interview when asked if the recession is a thing of the past.
While White House aides and economic analysts may debate the definition of recession, for much of the country, economic troubles continue. Overall unemployment is high, approaching 10% in some regions, consumer spending is down, and sales and profits across several industries are down.
A November survey out of the National Association for Business Economists, predicted that the job market would hit its low point in the first quarter of 2010 and unemployment would remain "stubbornly high" through the year.
As we enter a new decade, we need to look for key indicators of true economic improvement, such as an increase in the GDP, increase in work availability, and decrease in unemployment. We will also look to how the Obama administration and Congress will work to solve these problems, and the impact that any healthcare reform bill passage will have on the economy and the
patient care. Look for more economic and healthcare reform updates in future editions of The Communiqué.
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