GOP bill takes $117 billion from Medicare. AARP sounds the alarm, but will seniors notice?
Eric Roehm, MD March 10, 2017
www.NutritionHeart.com/Medicare-at-Risk
The proposed GOP healthcare bill came out on Monday, with multiple changes to the health coverage of lower income individuals, Medicaid, and those seeking individual health insurance policies.
If you are soon to be 65 years of age or older, you may think the political storm that surrounds this bill is notable, but you are sitting out of the rain and not directly affected. The only problem is that’s not true.
The GOP health bill decreases funding to the Medicare Hospital Insurance (HI) Trust Fund over the next 10 years by $117 billion dollars. This amount of money is not small change for the Medicare program. To put this in perspective, the entire Medicare HI Trust fund had a total of $194 billion at the end of 2015. A loss of the $117 billion hurts Medicare financial solvency.
Specifically, the GOP bill repeals the 0.9% Medicare tax that was enacted as part of the Affordable Care Act. Every dollar of this 0.9% tax, which is on income greater than $200,000/year, goes directly to the Medicare Hospital Insurance Trust Fund. This is the trust fund that helps pay for hospital and skilled nursing care of Medicare beneficiaries. The current GOP bill ends this tax and Medicare will take a financial hit. Don’t be surprised when the same advocates of this bill come back later to say Medicare doesn’t have the money to continue and Medicare needs to be turned into a voucher program.
AARP promptly noted the multiple adverse effects on Medicare. In the AARP letter to Congress, many concerns about the bill were raised:
“Repealing this provision could hasten the insolvency of Medicare … and Medicare’s ability to pay for services in the future.”
AARP goes on to say that it “opposes this legislation, as introduced, that would weaken Medicare, leaving the door open to a voucher program that shifts costs and risks to seniors.”
AARP has sounded the alarm, but will anyone notice?
Only time will tell.
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Resources:
www.NutritionHeart/Medicare-at-Risk
Checklist for judging Medicare impact of GOP bills
AARP opposes GOP bill
AARP letter to Congress
