Seniors & Obamacare
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| "During his service in Congress, John Mica has received recognition for his leadership on senior's issues from the 60 Plus Association and the Seniors Coalition." ________________________________________________ Mica on Healthcare Because the Obamacare plan that was passed by the Congress contained provisions that would require dramatic cuts to Medicare benefits, the legislation did not have my support or vote. As you may know, the bill requires $523 billion in cuts to Medicare over the next ten years. The bill also mandates $569 billion in tax increases. Even the Obama Administration and independent agencies have reviewed the legislation, since its passage, and have indicated that the cuts and costs will be even greater than initially projected. The Obama Administration has recently written to all seniors who currently receive Medicare benefits in an attempt to explain what they should expect as the new health care mandates are phased in over the next four years. This is what to expect.
One of the Medicare programs that will be most significantly impacted by the new legislation is Medicare Advantage. Currently more than 10 million seniors take part in this program. Unfortunately, the Administration has not determined how $206 billion will be cut from Medicare Advantage. Additionally, we have been informed that the Obamacare bill ends the tax subsidy for retiree drug programs—causing many companies to stop offering these plans to retirees. While the Obamacare legislation offers a retiree a reinsurance program to help compensate and preserve such plans starting in June 23, 2010, complete details for that program are not available at this time.
Obamacare will initially provide seniors who reach the Medicare Part D donut hole gap in prescription drug coverage a $250 check to help relieve some of the burden in the summer of 2010. In 2011, seniors receive 50% discount on prescription drugs expanding to 75% discount in 2020. However, even with this assistance provided for prescription drugs, our seniors will continue to face Medicare Part D increases.
Premium increases are expected to rise an average of 4% in 2011 and reach 9% in 2019. Additionally, impacting the costs in 2011, Obamacare will impose new taxes on name brand prescription drugs, ranging from $2.5 billion and increasing to $4.1 billion in 2018. Unfortunately, all the cuts of various benefits, to reach $530 billion levels in reductions required in the bill, have yet to be detailed by the Obama Administration.
Congress recently applied another mandate to resolve the Medicare reimbursement rate cuts to physicians and Medicare suppliers; however that temporary fix through the end of this year will require a 31% cut in 2011.
Finally Obamacare does not address the problem of unfunded Medicare liability, now approaching $38 trillion. With this huge deficit, mandated cuts and a wave of baby boomers accessing the system in the coming decade, Medicare faces some gargantuan challenges.
As details of changes in Medicare program and actions required under this new law are known, every step must be taken by congress to blunt the impact on our senior citizens. To be perfectly honest, the full impact and cuts to benefits are not are still being sorted out because the 2,700 page measure contains so many conflicting and overlapping provisions. Please be assured that I will do everything possible to repeal or dramatically reform any of the provisions which negatively impact or ration seniors’ access to quality medical care.
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