Medicare 2012 Election: The Great Medicare Debate

Medicare

2012 Election: The Great Medicare Debate

Since 1965, Medicare has been attempting to provide low cost, guaranteed access to much needed healthcare for senior citizens over the age of 65 and other age groups that suffer from disabilities and terminal diseases. These people represent some of the most vulnerable population groups in the United States. Most do not work, and rely on Medicare to provide them the access to healthcare they need. Unlike privatized health insurance companies, Medicare is a social insurance program that is paid for through federal mandates and tax payer funds. Billions of dollars are spent annually on over 50 million Americans in need (Alonso-Zaldivar 1). The care structure itself is broken into several main parts: Medicare Part A covers hospital costs, Part B cover most outpatient care costs, and Part C and D. cover prescription drug costs through dealing with other private insurance. Yet, the upcoming election in November is threatening to change and alter the structure. Each candidate has his own plan to deal with Medicare; both are trying to reign in the costs of operating Medicare, but with some elements being obviously more beneficial for Medicare recipients than others.

Mitt Romney is the Republic presidential candidate who wants an overhaul of Medicare in order to keep costs down. Romney's approach is based off his running mate Paul Ryan's suggestions. According to the research, "Romney officials say Medicare savings will come through competition among health insurance plans" (Alonso-Zaldivar 1). Romney is essentially trying to use the privatized healthcare insurance companies as a way to spread the costs out even further and thus save some of the burden off the federal government. Essentially, Romney wants to allow for open competition within the operation of Medicare in order to try to drive down costs for senior care. President Obama claims that this will turn into a voucher system, where seniors are given a check to go get care from private health insurance companies. Considering the current abuse that many of these companies are putting millions of Americans through in terms of rising healthcare costs, this is a dangerous game Romney is playing.

On the other hand, Obama is trying to execute a much different strategy to help keep future Medicare costs down. Rather than providing a competitive environment for healthcare providers, where they can still gather opportunities to increase their own profit potential, Obama is looking to cut funding dramatically from a provider perspective. Obama's model aims to create a plan "with the power to force payment cuts on the healthcare industry if Medicare costs rise above certain limits" (Alonso-Zaldivar 1). This is cutting costs from a profit perspective, and not a patient perspective. Here, the research suggests that the $716 billion in cut would "come mainly from lower annual payment increases for hospitals and other care providers, higher premiums for affluent beneficiaries and lower payments to Medicare Advantage plans, the private plans that provide Medicare benefits" (Pugh 1). Romney is trying to attack the plan by exaggerating the cuts and how they will impact seniors, but in reality it will impact providers more than anything else. Obama is also counting on his historic healthcare legislation, the Patient Protection and Affordable Care Act as well. Under this legislation, Obama would "transform, trim, and sustain Medicare" will imposing greater fees on providers and drug companies to help cover the massive costs of Medicare (Pugh 1).