FOR IMMEDIATE RELEASE: July 11th, 2011

Paulsen, Johnson Introduce Common Sense Medicare Reform

Reducing burdensome regulations on American Seniors

Today, Congressmen Erik Paulsen (3^rd Dist.-Minnesota) and Sam Johnson (3^rd Dist.-Texas)  introduced common-sense legislation to give seniors the freedom to make their own healthcare decisions and to opt-out of the government-run health program for seniors, Medicare.

The Retirement Freedom Act, H.R. 2435, will help reduce burdensome regulations in the Medicare program that restricts America’s seniors from truly being able to keep what health coverage they have.  This bill allows individuals to voluntarily opt out of Medicare Part A when they become eligible for the benefit.  Today, you can choose not to enroll in Medicare Part B or Part D, but not for Part A unless you give up your social security benefits too. 

Seniors with a Health Savings Account (HSA) and qualified High Deductible Health Plan (HDHP) are also able to continue to contribute to their HSA with pre-tax dollars after they turn 65 under this legislation.  Currently, once seniors who have an HSA turn 65, they are no longer eligible to contribute pre-tax dollars to their HSA.

“The choice to participate in Medicare Part A should be just that—a choice,” said Paulsen. “Seniors in Minnesota and across America should be able to maintain control of their own healthcare plans so that they receive the care they need. This common-sense legislation gives seniors the freedom to opt out of Medicare Part A, if it best suits them, without risk of losing other important benefits like Social Security.” 

“If Warren Buffett wants to opt out of Part A because he doesn’t need a government entitlement paying for his health care we should let him!  We should give seniors a choice to say ‘thanks, but no thanks’ if they decide they like their current coverage and they want to keep it,” said Johnson.

“A free society is based on personal choice and individual responsibility.  Medicare makes it illegal for seniors to have a choice.  Our bill changes that,” continued Johnson, who represents portions of Dallas and Collin Counties.

Paulsen and Johnson serve on the Ways and Means Committee.  U.S. Senator Jim DeMint (R-S.C.) joined 12 of his Republican colleagues in introducing similar legislation in the Senate last week.

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