Medicare Monitor

Medicare Monitor

The Palm Beach Post's veteran Washington correspondent, Larry Lipman, tracks policy makers and interest groups who are shaping the future of the federal health insurance program for the elderly.

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Medicare at a glance
Medicare is the federal health care system that covers about 36 million people age 65 and older, plus 7 million disabled. It has four parts:

Part A Covers inpatient hospital care as well as nursing home, home health and hospice care. Nearly all elderly and disabled Americans qualify for Part A coverage.
Financed by a 2.9 percent payroll tax divided equally between employees and employers.

Part B Covers outpatient care, doctor’s services, durable medical equipment, home health visits and preventive care. Part B coverage is voluntary, but roughly 40 million are enrolled.
Financed by beneficiary premiums and federal general revenue. Current monthly premiums are $93.50. Starting this year, individuals whose taxable income is more than $80,000 will pay a higher premium.

Part C Medicare Advantage managed care plans provide health care normally covered by Medicare Parts A and B. They may also provide some other benefits, including prescription drugs, not covered by traditional Medicare. Oart C is voluntary; about 7 million beneficiaries are enrolled.
Financed by Medicare and beneficiary premiums, which vary among plans.

Part D Medicare prescription drug plans come in two types, those that just cover prescription drugs and those that cover drugs as part of a broader managed care benefit. Part D is voluntary. About 9.2 million beneficiaries are in stand-alone drug plans and about 5.1 million are in managed care drug plans.
The plans are private and financed by Medicare and beneficiary premiums, which vary among plans.
-- Larry Lipman

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The entry titled "House passes Medicare bill," and any of the comments about it.

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Home > Medicare Monitor > Archives > 2008 > June > 24 > Entry

House passes Medicare bill

By Larry Lipman | Tuesday, June 24, 2008, 01:05 PM

With less than a week before a deep cut in Medicare payments to doctors is scheduled to take effect, the House passed a bill Tuesday that would avert those cuts while trimming payments to private managed care plans.

The 355-59 vote came despite Republican leaders complaints that the Democrats had not given lawmakers enough time to review the legislation and had refused to allow the bill to be amended.

But Democrats argued the hasty passage was necessary because doctors have warned they will stop taking new Medicare patients if their payments are reduced.

Unless Congress acts, a 10.6 percent cut in Medicare payments to doctors is scheduled to take effect July 1. Under the bill, the reduction would be averted and doctors would receive a 1.1 percent increase starting next January.

A similar bill failed to win Senate consideration on a procedural vote last week.

The White House issued a statement Tuesday warning that the president’s top advisors would recommend a veto if the House bill passed.

Meanwhile, key senators who have been working on a similar bill appeared close to an agreement that would avert the physician pay cut without significantly trimming payments to private Medicare Advantage plans.

Despite reports that the Senate was near a bipartisan agreement, Rep. Pete Stark, D-Calif., warned members not to wait for the Senate to act.

“This may be the last chance,” Stark said.

But Rep. James McCrery, R-La., said the Seante would reject the House bill and even if it passed it would be vetoed by the president.

In addition to averting the physician pay cut, the bill would delay for 18 months a controversial plan to limit the sale and rental of medical equipment starting July 1 in 10 metropolitan areas including an area covered by Palm Beach, Broward and Dade counties.

Other provisions of the bill would provide greater benefits to the mentally ill, increase subsidies for low-income beneficiaries to purchase prescription drugs and require quicker Medicare payments to pharmacies.

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