Noam Levey of the Tribune Washington Bureau is reporting that the recent health reform laws signed into law by President Obama may lead to lower Medicare premiums for our nation’s senior citizens. His report is based on last night’s issuance of an analysis on the new health legislation by independent actuaries at the U.S. Department of Health and Human Services. The analysis is highly regarded as it is seen as the first comprehensive look at the legislation by neutral experts.
Mr. Levey says that the report suggests that the Medicare program will remain solvent until 2029 – better than estimates prior to health care reform which had projected that the program would be doused in red ink around 2017. And according to a statement issued by HHS Secretary Kathleen Sebelius Medicare monthly premiums will be lower than otherwise expected due to several measures in the bill, such as Medicare cuts, higher taxes, and a commission responsible for Medicare savings.
Of course not all is rosy with the analysis of the legislation. Fox News’ report on the analysis states that the bill will raise projected spending by about 1% over 10 years, and could be even larger since the analysis warned that Medicare cuts in the law may be unrealistic and unsustainable. The analysis also projected that Medicare cuts could result in sending 15% of hospitals and other Medicare providers into the red, thereby reducing access to seniors.
The report also estimated that a large exodus from Medicare Advantage would occur due to reductions in payments to private Medicare Advantage plans that would eliminate many of the extra benefits currently offered. The analysis projects that Medicare Advantage enrollment will decrease by 50%. This would leave seniors to seek out alternatives such as Medicare supplements, or be saddled with larger out-of-pocket expenses.
Sources: HHS, Los Angeles Times, Fox News |