For years now attempts to control Medicare costs included limiting and actually lowering physician inflation adjusted reimbursement based a formula adopted by Congress in 1997. However, each time the formula dictated an actual fee cut, the cut was overridden by Congress. Needless to say the law didn’t work.
Now the House has worked out a so-called permanent fix (stand by to see if the Senate agrees).
However, in typical political fashion here are the highlights of how the House bipartisan changes propose accomplishing this slight of hand:
Of the estimated $200 billion cost of the total package, which is spread out over 10 years, roughly $35 billion would be covered by measures such as raising premiums on higher income senior citizens. Providers, such as hospitals, would accept some cuts, and the remaining $140 billion would be added to the deficit. The details of such cost-offsetting measures will be unveiled as soon as Monday. WSJ 3-23-2015
Seventy-percent of the projected cost is simply ignored and added to the deficit. Is there any problem that can’t be solved by taxing somebody else and increasing the deficit?😏
Starting in 2018, wealthier Medicare beneficiaries (individuals with incomes between $133,500 to $214,000, with thresholds likely higher for couples) would pay more for their Medicare coverage, a provision impacting just 2 percent of beneficiaries, according to the summary.
Starting in 2020, “first-dollar” supplemental Medicare insurance known as “Medigap” would not be able to cover the Part B deductible for new beneficiaries, which is currently $147 per year but has increased in past years.
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