Opinion
What editorial writers are saying about the Medicare trustees report
■ The program's hospital trust fund is expected to go broke in 2017. The rise in outpatient spending continues to outpace the expansion of the economy.
Posted June 8, 2009.
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The worsening financial condition of Medicare has raised alarms. A sampling of newspapers across the country includes speculation about how the federal government will tackle rising costs.
Social Security, Medicare and reform
To some small extent, Medicare's costs are driven by demographics. But the biggest factor by far is the cost of care that each patient receives, not the number of patients. And that's not just a problem for public programs; Medicare's costs per patient actually have grown more slowly than those of private insurance since 1997. A growing body of research shows that much of the care Americans receive provides little or no real benefit. That's why it makes sense to do more comparative effectiveness research -- to study what treatments work best, and arm doctors with that knowledge. It also makes sense to change the way doctors and hospitals are paid. They should be rewarded for providing better care, not more care. St. Louis Post-Dispatch, May 13
Redefined benefits
Slow the growth in health care costs, and Medicare will improve its financial position. What Congress shouldn't overlook is that there are changes to Medicare alone that would reap savings, roughly $266 billion a year during the next decade. The president, following the lead of the Medicare Payment Advisory Commission, has proposed ending overpayments to private insurers participating in Medicare. As it is, Medicare pays private insurers 14% more on average to cover beneficiaries than it would cost under the traditional program. Akron (Ohio) Beacon Journal, May 14
Entitled to help: Medicare and Social Security need a rescue
Americans have had various reactions to reports of the decline of Social Security and Medicare. One is resignation and the feeling that "I knew they were going to do that," reflecting cynicism about government promises. Another reaction, often made through clenched teeth, is "Congress wouldn't dare let Medicare or Social Security run out of money." The idea is that Congress knows that voters being cheated out of either program could spell rage at the ballot box. Pittsburgh Post-Gazette, May 14
Social Security and Medicare: Not a good outlook
The administration deserves credit for continuing to beat the drum on the need for reform, but drum-beating won't save Social Security or Medicare. In health care, the White House wants to pair cost control with an expensive expansion of coverage, but there is a big risk that Congress will embrace the latter while jettisoning the former. It is reasonable to include coverage expansion as a sweetener to the more bitter pill of cost containment, but cost control has to be at the center of any plan. Washington Post, May 14
Entitlements crisis: No problem, just raise taxes
Medicare's situation is even more serious. Part B, which covers doctors and outpatient care, and Part D, the prescription drug program, are already totally dependent on general tax revenues, to the tune of $179 billion last year. Curiously, the trustees are unconcerned by these facts because "current law automatically provides financing each year to meet next year's expected costs." In other words, Washington can always raise taxes to cover increased benefits. San Francisco Examiner, May 16
Closer to broke
Medicare requires more complex changes in its cost structure, as well as a broader answer to rising health-care costs. It's still largely a throwback to old-fashioned fee-for-service health plans that encourage unneeded services and contribute to medical-care cost inflation. Chicago Tribune, May 16
There are solutions
Lawmakers have known for years that the entitlement programs are in trouble. The latest report on their precarious condition is just a more urgent warning that Washington can't keep kicking the problem down the road. Task forces have studied the problem, but the recommendations just gather dust on shelves. A solution keeps getting postponed because the options are politically unpopular. Congress can either raise taxes, or cut benefits, or enact a combination of both. Philadelphia Inquirer, May 18