Barack Obama, the President holds himself out as a protector of Medicare, a system he has said he cared deeply about. Although, he is also suggesting cuts to Medicare Part D, the prescription drug program for America's retiree's, by changing the way it compensates for drugs for most of our seniors.
President Obama can't have it both ways, his plan would change dramatically the way prescription drugs payments are administered for all citizens under the Medicare Part D plan making it difficult have cost increases passed along.
The Medicare Part D program was passed under President George W. Bush in 2003 with a constraints on policy design covering the fee for service of Medicare. Medicare Part D was supposed to give participants two selections of value and choice, under the Obama plan the Seniors lose this choice.
Under Medicare Part D, personal insurers compete for senior citizens business by offering different coverage plans. The insurers work with pharmaceutical companies to obtain the best deals for the medications they will cover, competition keeps costs down.
Premiums have been $30 a month, Nationally for four years, even as health insurance premiums have gone through the roof. Government officials thought Part D plans would be about $61 a month by now and are far lower than anticipated.
Taxpayers are saving as well as noted by the nonpartisan Congressional Budget Office, and spending on Medicare's prescription drug benefit has come in 45 percent below budget Initiatives. It's the only part of Medicare that's keeping costs down.
Part D is producing excellent health results In a 2011 study, researchers at the Harvard Medical School, claim that seniors' well-being improved dramatically and hospitalizations was lowered as a result of Part D. Another study found that while prescription drug usage was up by 13 percent among seniors, thanks to Part D out of pocket prescription drug costs fell by 18. percent.
The rising cost of Medicare has conservatives are understandably worried . But Part D offers a reminder of how better the program works when designed with keeping competition in mind.
The President Barrack Obamaand his administration has specifically targeted Part D for cuts time and time again. During the State of the Union address, the President suggested to "reduce taxpayer subsidies to prescription drug companies."
President Obama proposes requiring pharmaceutical companies to rebate a set percentage of each prescription sold to seniors who are eligible for both Medicaid and Medicare assistance. Medicaid, the joint state federal program for the poor, already requires such rebates from the drug makers.
The White House estimates this would save about $156 billion, but don't go running to the bank and expect money back.
The fact is, these "rebates" are a really nice clone of government-imposed price controls. And as pharmaceutical companies try to compensate for their losses, the rebate plan would end up costing all seniors more.
Consultants from the Lewin Group found that the rebate inititive would increase Part D out of pocket costs for all senior citizens ranging from 25 to 50 percent. The former Congressional Budget Office director Douglas Holtz-Eakin hinted that premiums would go up anywhere from 20 to 40 percent.
Higher costs and fewer options are evident with this plan. A study by Joseph Antos of the American Enterprise Institute and Guy King, Medicare's former chief actuary, surmised that Obama's rebate plan would limit health insurers from offering plans to low income senior citizens.
A Congressional Budget Office report released last year estimated that increasing prescription drug usage by 1 percent among Medicare eligible individuals results in a 0.2 percent decrease in overall medical spending on the Medicare constituents and going this direction would be a wrong turn on a dead end road.
Missouri's lawmakers shouldn't hesitate to tout this smart market-based policy reform in Washington. They must protect the state's seniors from Obama's attempt to undermine the Part D road to success.
President Obama can't have it both ways, his plan would change dramatically the way prescription drugs payments are administered for all citizens under the Medicare Part D plan making it difficult have cost increases passed along.
The Medicare Part D program was passed under President George W. Bush in 2003 with a constraints on policy design covering the fee for service of Medicare. Medicare Part D was supposed to give participants two selections of value and choice, under the Obama plan the Seniors lose this choice.
Under Medicare Part D, personal insurers compete for senior citizens business by offering different coverage plans. The insurers work with pharmaceutical companies to obtain the best deals for the medications they will cover, competition keeps costs down.
Premiums have been $30 a month, Nationally for four years, even as health insurance premiums have gone through the roof. Government officials thought Part D plans would be about $61 a month by now and are far lower than anticipated.
Taxpayers are saving as well as noted by the nonpartisan Congressional Budget Office, and spending on Medicare's prescription drug benefit has come in 45 percent below budget Initiatives. It's the only part of Medicare that's keeping costs down.
Part D is producing excellent health results In a 2011 study, researchers at the Harvard Medical School, claim that seniors' well-being improved dramatically and hospitalizations was lowered as a result of Part D. Another study found that while prescription drug usage was up by 13 percent among seniors, thanks to Part D out of pocket prescription drug costs fell by 18. percent.
The rising cost of Medicare has conservatives are understandably worried . But Part D offers a reminder of how better the program works when designed with keeping competition in mind.
The President Barrack Obamaand his administration has specifically targeted Part D for cuts time and time again. During the State of the Union address, the President suggested to "reduce taxpayer subsidies to prescription drug companies."
President Obama proposes requiring pharmaceutical companies to rebate a set percentage of each prescription sold to seniors who are eligible for both Medicaid and Medicare assistance. Medicaid, the joint state federal program for the poor, already requires such rebates from the drug makers.
The White House estimates this would save about $156 billion, but don't go running to the bank and expect money back.
The fact is, these "rebates" are a really nice clone of government-imposed price controls. And as pharmaceutical companies try to compensate for their losses, the rebate plan would end up costing all seniors more.
Consultants from the Lewin Group found that the rebate inititive would increase Part D out of pocket costs for all senior citizens ranging from 25 to 50 percent. The former Congressional Budget Office director Douglas Holtz-Eakin hinted that premiums would go up anywhere from 20 to 40 percent.
Higher costs and fewer options are evident with this plan. A study by Joseph Antos of the American Enterprise Institute and Guy King, Medicare's former chief actuary, surmised that Obama's rebate plan would limit health insurers from offering plans to low income senior citizens.
A Congressional Budget Office report released last year estimated that increasing prescription drug usage by 1 percent among Medicare eligible individuals results in a 0.2 percent decrease in overall medical spending on the Medicare constituents and going this direction would be a wrong turn on a dead end road.
Missouri's lawmakers shouldn't hesitate to tout this smart market-based policy reform in Washington. They must protect the state's seniors from Obama's attempt to undermine the Part D road to success.
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