Last year Congress passed the most sweeping improvements to Medicare in history. In a long-debated bipartisan agreement, Republicans and Democrats worked together to bring the popular health insurance program for the elderly and disabled into the 21st century.
This summer Medicare celebrates its 39th anniversary. Throughout the last four decades, tens of millions of Americans have come to rely on the federal program to provide essential health care coverage. Without a doubt, Medicare is woven into the social fabric of American society.
But over the years, advances in medical science have changed the way America practices medicine. We’ve gradually shifted from a delivery system rooted in hospital-based care to one emphasizing preventive care, disease management and breakthrough pharmaceuticals.
Thanks to the Medicare Modernization Act, Medicare for the first time ever will offer many of the same benefits commonly available to federal employees and workers in the private sector. Most notably, Medicare will offer a voluntary, universal and targeted prescription drug benefit that gives the greatest assistance to those most in need. The permanent prescription drug program will begin enrolling beneficiaries next fall.
In the meantime, millions of Americans are now card-carrying members of Medicare’s temporary drug discount program. The interim discount program offers Medicare beneficiaries a break on their prescription medicines until the permanent program gets up and running.
Studies show substantial savings from those cards. The Kaiser Family Foundation found savings of 17 to 24 percent off retail prices and even greater savings of about 30 percent by going through a mail order pharmacy.
Lower income beneficiaries save even more. The combination of a $600 subsidy from Medicare and additional discounts from manufacturers means that lower income seniors will save as much as 85 percent.
And soon, Medicare also will unveil a comprehensive upgrade of preventive benefits for all beneficiaries, including a welcome-to-Medicare physical. Plus, coverage of screening tests for heart disease, diabetes, osteoporosis, and breast, colon, cervical and prostate cancers will give even better health care security to America’s Medicare population.
The Centers for Medicare and Medicaid Services, the federal agency that runs Medicare, in July issued proposed regulations to implement the new screening benefits as well as improved payment rates for physicians.
As chairman of the Senate Finance Committee, I served as a chief architect of the new Medicare law. During negotiations in Congress, I insisted upon increased payment rates to narrow the unfair reimbursement gap that discriminated against doctors serving Medicare patients in rural America.
The proposed payment rate changes for 2005 will boost assistance to rural-based physicians. This will help attract the best and brightest medical professionals and maintain access to quality health care close to home for all Iowans.
From my key leadership position in the Senate, I will continue to conduct aggressive oversight over Medicare as the new law is fully implemented. There’s bound to be a few bumps along the way, but I’ll keep close tabs to see that the new Medicare does indeed strengthen health care for current beneficiaries and future generations.
Not surprisingly, partisanship has crept into the mix as Medicare hammers out the details to implement the new prescription drug benefit. In politics, electioneering comes with the territory. But I’ve long believed that good public policy is good politics.
Folks trying to make hay by bashing the new Medicare benefits as being too complicated aren’t doing voters a favor. Their scare tactics are fueling confusion. And those who claim the new law doesn’t go far enough aren’t coming clean with voters.
Last time I checked, money doesn’t grow on trees. There is no bottomless source of cash for Medicare benefits. In the next 20 years, the Medicare population will grow from 41 million to about 70 million. When the baby boomers begin to retire in 2011, a significant demographic shift will begin. Fewer workers will be supporting each Medicare Part A beneficiary. Consider four workers today support one Medicare beneficiary. That drops to 2.4 per beneficiary in 2030.
At the end of the day, voters tire quickly of electioneering. They want results. And this Congress delivered on the promise to strengthen Medicare with generous benefits that are sustainable and affordable for beneficiaries and hard-working taxpayers.