January Newsletter 2010

ObamaCare Busted?

Since the Massachusetts special election for Senate, Democrats lost their 60th vote that President Obama was counting on to pass his healthcare reform legislation. The people of Massachusetts spoke up about healthcare reform when they elected Scott Brown, whose campaign cornerstone was a promise to vote against the healthcare reform bill. Even if a compromise is made between the House and Senate bills, it will now be much more difficult for the healthcare reform bill to pass in its current state.

Seniors have been very vocal both in support and objection to elements of the healthcare reform bills. Their voices were heard and issues like Medicare funding cuts and end-of-life consultations have been drawing intense national attention.

Facing the Facts

Undoubtedly the White House will go back to the drawing board on healthcare reform but, regardless of what happens with the specific bills, there are still serious long-term issues facing Medicare. Critical debates continue addressing long-term fiscal solvency, federal deficits that threaten funding, the increasing senior population, and physician payment cuts - recently leading to the alarming trend of physicians refusing to see Medicare patients.

Without reform March 1^st marks the start of a 21% cut in Medicare physician payments. Seniors, physicians, and military advocacy groups have urged the Senate to reverse the Medicare payments cuts to physicians. Already, as evidenced at the Mayo Clinic’s primary care center in Glendale Arizona, seniors are facing limited physician choices and access to care.

Due to the promised healthcare benefits available to Medicare-eligibles, the federal government faces significant unfunded liabilities. With a rapidly increasing senior population and inflation of healthcare costs, promised benefits have overshot payroll tax collections since 2004. In order to fund the gap between current Health Insurance (HI) income and the promised benefits of Medicare, Medicare payroll taxes would need to be more than 6 times the current Medicare payroll tax of 2.9%.

What's to Come

The next few weeks will be critical in shaping the future of Medicare and determining if ObamaCare can survive in any form. Seniors have been instrumental bringing about change and will undoubtedly continue to be a powerful force shaping health care reform. Remember to stay informed and to let your local politician hear your voice. For more articles on the latest Medicare news topics, check out the PlanPrescriber Learning Center .

1. Center for Data Analysis, The Economic and Fiscal Effects of Financing Medicare’s Unfunded Liabilities, October 11, 2005
2. Impending Medicare Crisis for Seniors, Baby Boomers, and Military
3. Bloomberg.com, Mayo Clinic in Arizona to Stop Treating Some Medicare Patients, December 31, 2009

Read the other January Newsletter articles:

• Don't Become a Victim of the Growing Diabetes Epidemic


• Medicare Open Enrollment, January 1 - March 31


• You Don’t Need the Gym to Keep This New Year’s Resolution!
  One Senior’s Quick and easy tips for a healthy 2010