October Newsletter 2009

Health Care Reform Threatens Medicare:
Senate and House Proposals Compared

While there are many details in both the U.S. Senate Finance Committee’s and the U.S. House of Representatives’ health care reform proposals, the bottom line for most senior’s is “How will this health care reform affect my Medicare coverage?”

Health care reform is being widely debated with the focus on Medicare as a primary means of containing health care costs. There are some common themes in reform proposals and both the Senate and the House support these general changes to Medicare:

• Begin eliminating the Medicare Part D drug coverage gap and require drug makers to provide a 50% discount on brand-name prescriptions filled during the gap.
• Provide bonus payments to primary care doctors who agree to accept Medicare patients.
• Reduce and restructure payments to Medicare Advantage plans.
• Cut Medicare Disproportionate Share (DSH) payments to hospitals providing care to low-income seniors.

The Senate also proposes reducing Medicare Part D premium subsidies for individuals with an income above $85,000 and couples with an income above $170,000, and the House proposes that Medicare cover only proven preventive services and that payment for some preventative services be increased to 100% of actual charges.

When you add the fact that some private insurers will not be renewing certain plans for 2010 to the various reform proposals, it’s no wonder so many seniors are concerned and confused! Yet the Center for Medicare and Medicaid Services assures seniors that “at no time will they lose their Medicare coverage, no matter what business decisions have been made by their Medicare Advantage or Prescription Drug Plan.”

Now is the time to evaluate your choices in 2010. While there are many health care reform proposals circulating, nothing is set in stone. There are still many options for you to choose from for this coming year. To learn more about which plans will suit you best, call us at 1-800-819-6906 or visit PlanPrescriber.com.

Read the other October 2009 articles:

• 59% of Seniors Opposed to Health Care Reform
• Popularity Contest: The Benefits of Medicare Advantage, Medigap, & PDPs