Legislators Consider Sweeping Medicare Changes As Part of Deficit Package

Two major Medicare changes are being considered by lawmakers as they negotiate on various proposals to close the country's staggering $14.3 trillion debt, according to a Green Bay Press Gazette news report.

Under one proposal by President Obama's deficit reduction panel, Medicare's copayment and deductible would be revised to discourage excessive treatments or visits to physicians' offices. Such a measure, however, may require some seniors to pay more in order to receive needed medical attention. Exactly how much seniors would be affected is unclear, though premiums under private health plans would become more affordable, according to the news report.

Another proposal seeks to move nearly 9 million individuals with both Medicare and Medicaid into a managed-care health plan for better coordination of care. These beneficiaries are among those with the highest healthcare costs.

The Medicare Payment Advisory Commission has not endorsed either of the proposed changes. However, in a recent report, MedPAC emphasized the need "to give beneficiaries better protection against high (out-of-pocket) spending and to promote incentives for them to weigh their use of discretionary care, without discouraging needed care."

Budget negotiators, led by Vice President Joe Biden, are looking to Obama's deficit panel's list of proposals, which was introduced last year and principally relied on payment cuts to healthcare providers and drug companies. According to the news report, the deficit panel projected $110 billion in savings from 2012-2020, though the proposals may have some unintended consequences for seniors.

Read the news report about proposed Medicare changes.

Related Articles on Medicare:
Physicians' Medicare Payments May be Cut 29.4%
MedPAC Issues June Report to Congress; Includes Suggestions to Improve Use of Imaging
MACPAC Issues First June Report to Congress

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