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(Circulation. 1996;93:203-204.)
© 1996 American Heart Association, Inc.
Articles |
Medicare Reform Addresses Managed Care Issues
Key Words: managed care • emergency cardiac care • Medicare
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Medicare in Financial Jeopardy |
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According to the Medicare Board of Trustees, Medicare Part A (hospitalization and skilled nursing care) will begin spending more than it takes in for the first time in the 30-year history of the program. The Republican leadership of the House of Representatives has stated that by 2002, the Trust Fund will be bankrupt. It is therefore no surprise that a key component of the drive in Congress to balance the federal budget includes steps toward reducing the costs of the Medicare program to the tune of $270 billion over 7 years.
The debate has become quite heated during the 104th Congress, often pitting the Medicare cuts against the nearly $250 billion in proposed personal tax cuts. Each is a component in the federal budget reconciliation legislation.
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Congress Proposes Reform |
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Among the provisions in the Medicare Reform proposals passed by the House and Senate are details regarding eligibility, monthly premiums, annual deductibles, health plan options, medical savings accounts, and hospital and doctor payments.
The Congress's Medicare reform bill establishes a new Medicare Choice program that would allow senior citizens to join private plans offering Medicare coverage. Among those choices could be health maintenance organizations (HMOs), provider-service networks, preferred provider organizations, and medical savings accounts (MSAs).
The Congressional Budget Office reports that Medicare per capita costs are expected to grow by about 8.2% per year. The House/Senate proposals expect to cut this growth to about 5% each year.
MSAs permit individuals with a catastrophic-care health plan to
maintain MSAs with which to purchase a high-deductible