Senators Joe Lieberman (I-Conn.) and Tom Coburn (R-Okla.) have released a proposed Medicare plan that could save $600 billion over the next 10 years, though much of those cost-savings would be shouldered by senior citizens and the wealthy.
Under their proposal, seniors' out-of-pocket costs (depending on their income) would be capped at $7,500 for those who make less than $85,000 per year. The cap on annual medical costs was designed to help protect seniors in the case of bankruptcy or financial hardship during a major illness. However, seniors would also be expected to pay a greater portion of their healthcare costs.
The Medicare plan comes as Vice President Joe Biden leads talks over the country's debt ceiling and potential deficit-reduction plans. Here are other major proposals listed in Sens. Lieberman and Coburn's Medicare plan:
• Raise the eligibility age for Medicare two months every year until the eligibility age reaches 67 in 2025, at which point the eligibility age would remain at 67. This change would begin for those who were born in 1949. However, the proposal includes a caveat in which the eligibility age would be rolled back to 65 if the Affordable Care Act were repealed.
• Depending on their income, wealthier seniors would be expected to pay higher out-of-pocket costs. The new maximum out-of-pocket costs increase incrementally:
• Individuals aged 65 and older who make more than $150,000 annually ($300,000 for couples) would be expected to pay the full cost of their Medicare Part B coverage. The proposal would also require seniors who make more than $150,000 annually ($300,000 for couples) to pay full costs for their Medicare Part D drug coverage.
In their defense of these proposal, Sens. Lieberman and Coburn believe wealthier Americans should pay more in order for Medicare to become solvent and to avoid using federal tax dollars to subsidize the health insurance of high-income seniors.
• The proposal would also affect healthcare providers. Under the plan, a three-year sustainable growth rate fix would give Congress time to create a new payment system for Medicare providers. Sens. Lieberman and Coburn recognize that extending the SGR for three years would cost $37.7 billion over the next 10 years but contend the overall savings from the proposal would offset that cost.
Read Sens. Lieberman and Coburn's proposed Medicare plan in full (pdf).
Related Articles on Proposed Medicare Reforms:
Medical Societies Urge Congress to Make Medicare Payment Reform Part of Deficit-Reduction Plan
Hope for Biden-Led Deficit-Reduction Plan Dims After Breakdowns Over Medicare Cuts, Tax Increases
New Medicare Actuary Data Used to Push for Medicare Overhaul, Defend Healthcare Reform
Under their proposal, seniors' out-of-pocket costs (depending on their income) would be capped at $7,500 for those who make less than $85,000 per year. The cap on annual medical costs was designed to help protect seniors in the case of bankruptcy or financial hardship during a major illness. However, seniors would also be expected to pay a greater portion of their healthcare costs.
The Medicare plan comes as Vice President Joe Biden leads talks over the country's debt ceiling and potential deficit-reduction plans. Here are other major proposals listed in Sens. Lieberman and Coburn's Medicare plan:
• Raise the eligibility age for Medicare two months every year until the eligibility age reaches 67 in 2025, at which point the eligibility age would remain at 67. This change would begin for those who were born in 1949. However, the proposal includes a caveat in which the eligibility age would be rolled back to 65 if the Affordable Care Act were repealed.
• Depending on their income, wealthier seniors would be expected to pay higher out-of-pocket costs. The new maximum out-of-pocket costs increase incrementally:
- $12,500 for individuals with income $85,000—$107,000 ($170,000-$214,000 for married couples)
- $17,500 for individuals with income $107,000—$160,000 ($214,000 - $320,000 for married couples)
- $22,500 for individuals with income $160,000—$213,000 ($320,000 for married couples)
• Individuals aged 65 and older who make more than $150,000 annually ($300,000 for couples) would be expected to pay the full cost of their Medicare Part B coverage. The proposal would also require seniors who make more than $150,000 annually ($300,000 for couples) to pay full costs for their Medicare Part D drug coverage.
In their defense of these proposal, Sens. Lieberman and Coburn believe wealthier Americans should pay more in order for Medicare to become solvent and to avoid using federal tax dollars to subsidize the health insurance of high-income seniors.
• The proposal would also affect healthcare providers. Under the plan, a three-year sustainable growth rate fix would give Congress time to create a new payment system for Medicare providers. Sens. Lieberman and Coburn recognize that extending the SGR for three years would cost $37.7 billion over the next 10 years but contend the overall savings from the proposal would offset that cost.
Read Sens. Lieberman and Coburn's proposed Medicare plan in full (pdf).
Related Articles on Proposed Medicare Reforms:
Medical Societies Urge Congress to Make Medicare Payment Reform Part of Deficit-Reduction Plan
Hope for Biden-Led Deficit-Reduction Plan Dims After Breakdowns Over Medicare Cuts, Tax Increases
New Medicare Actuary Data Used to Push for Medicare Overhaul, Defend Healthcare Reform