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The Business of Health Care Report
Today, I'd like to talk about
Medicare. For years, America's seniors have
been promised a Medicare program that gives them access to affordable prescription
drugs. Last December, President Bush and Congress finally delivered a comprehensive
Medicare reform law that has the potential to improve senior health care. According to White House estimates,
beginning in June, 40 million seniors and disabled Americans will save 10 to 25 percent
of the cost of most medicines through a drug discount card provided under the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003. By 2006, when the drug benefit is
fully phased in, the White House predicts that seniors without drug coverage today
will see their drug spending cut in half, while those with lower income and high catastrophic
drug costs will get substantial government financial help. Despite its benefits, however, the
law comes with a hefty price tag. The Congressional Budget Office estimates the cost
of the Medicare drug benefit alone to be $395 billion over the next 10 years, while the
Bush administration estimates the cost to be closer to $535 billion. While the new law reinstates some prior
Medicare reductions to physicians with increases of 1.5 percent in 2004 and 2005, physicians
are again likely to face cuts in 2006. Without changes to the law, the American Hospital
Association and American Medical Association predict providers may reduce the number of
Medicare patients served, eliminate services, discontinue charitable care, or close their
practice to Medicare patients. So while aspects of the new legislation
are good, America must not allow Congress to continue to balance the Medicare budget on
the backs of health care providers. If such is the case, consumers will be the losers rather
than the beneficiaries of reform. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO
Doug Hawthorne
with "The Business of Health Care Report" on NewsRadio 1080 KRLD. Sources:
©
2004 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 