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Escalating Medicare Costs Expected To `Trigger` Cuts Next Year
TSCL Fights Immigration Legislation That Would Add Billions In New Costs Government officials will announce 2007 Medicare premiums in a few weeks. The most worrisome news for seniors isn’t just the increase in premiums for Medicare Parts B and D. The really troubling news is the relentless escalation of Medicare costs that many analysts say will next year force the President and Congress to cut program spending. When Congress passed the new Medicare drug legislation three years ago, a provision was slipped in to cap the amount the federal government could spend to cover Medicare costs. This little-known provision requires that if two successive reports from the Medicare Trustees estimate that general federal revenues would finance more than 45% of total Medicare expenditures, then the President would have to propose, and Congress would have to consider, legislation to cut the government portion of spending below 45%. Trustees reported earlier this year that the trigger was hit for the first time, and it’s widely believed that Trustees will make the second report that the trigger is hit next year. In addition, Trustees have warned that the Medicare Part A (hospital insurance) payroll taxes are currently falling short of expenditures for the program. Unbelievable as it may seem, however, despite Medicare’s faltering finances, and impending higher costs for America’s seniors, pending “guest worker” immigration legislation would add billions in extra new costs to the program. If Congress is successful in passing amnesty legislation, Medicare’s solvency problems will become even worse. This spells even deeper cuts, and higher costs for current Medicare beneficiaries in the future. TSCL is aggressively fighting “guest worker” legislation. Next year Congress will undoubtedly be forced to consider proposals that will significantly hike Medicare premiums and deductibles, add new co-insurance costs to some services, expand “Means Testing,” and other measures which could cap the amount the government pays, with the beneficiary making up the difference. Please help us tell Congress not to make the situation much, much worse by legalizing millions of illegal immigrants! Send an e-mail to your Members of Congress. Click here: Sources: 2006 Medicare Trustees Report, May 1, 2006. Cost Estimate of S. 2611, Congressional Budget Office, May 16, 2006. August 2006 | ||||||||
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