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Congressional Corner: Changes to Medicare Increasingly Threaten Seniors` Financial Security
By Representative Nita M. Lowey Unfortunately, recent changes to Medicare increasingly threaten seniors' financial security. Congress and the Bush Administration implemented an overly complex prescription drug bill that is more likely to line the pockets of insurance and pharmaceutical companies than produce significant savings for the average senior. The Medicare Modernization Act (MMA) of 2003 also included a means testing provision that will raise premiums for Part B —which covers physician and outpatient hospital care—for millions of beneficiaries. This increase will hit seniors who are already paying twice as much for Part B than they did in 2000. This one-two punch just isn't fair. The federal government currently pays 75% of Part B premiums. In 2007, the federal government's share will be reduced for 1.2 million beneficiaries whose annual incomes are over $80,000, resulting in premiums of $88.50 per month in 2006 rising to $173 per month in 2007. Within 3 years, some could pay as much as $413 per month for Part B. In addition to this dramatic increase, President Bush has proposed removing the annual inflation index for the means testing income threshold. As annual incomes and costs of living rise with inflation, no adjustment would be made to the income threshold for Part B. Over time, millions more middle class seniors would be penalized by higher premiums. This proposal isn't simply about asking higher-income seniors to pay more into Medicare than others—they already do that through higher income and Social Security taxes which help fund Medicare. In my judgment, Part B has become another target for this fiscally irresponsible Congress and Administration to reign in their record-breaking budget deficits. It would be impossible to close the budget gap on the backs of seniors, and it's unconscionable to force them to carry such a hefty financial burden at a time when they most need the assistance Medicare provides. That is why I introduced the "Medicare Part B Premium Fairness Act," which would eliminate means testing altogether. And, that's why I'm fighting to reverse President Bush's proposal to scrap the inflation index for Means Testing Part B premiums. I'm working with my colleagues in Congress to develop bipartisan, thoughtful solutions to ensure Medicare's financial stability and preserve American seniors' retirement security. We're counting on you to help us send a clear message: placing greater financial burdens on millions of seniors is simply not the answer. May 2006 | ||||||||
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