Dems

In a move denounced by AFL-CIO President John Sweeney and prominent Democrats such as Sen. Barbara Boxer (D-Calif.), the Bush administration has proposed, and Congress has passed, an overhaul of the current Medicare system.

Drafted in a committee without a single Democrat, the bill calls for seniors to choose between continued coverage under the existing system, or from several HMOs under Bush’s Enhanced Medicare plan. Those choosing anything more than minimal coverage will have to pay increased premiums and co-pays, likely to increase to $810 per year, before coverage begins. Preventative measures and therapies — like anti-stroke treatments — not currently covered under Medicare, will only be covered for those choosing more expensive, comprehensive coverage.

HMOs stand to profit handsomely from this new system. For providing the same benefits as those that are currently covered under Medicare, HMOs would receive $1,900 more per patient per year. Current controls on the prices of prescription drugs will be removed under the new plan, with no evidence of new regulations. Ironically, one of the HMOs contracted by the government is HCA/Columbia Health Care Corp., owned by the family of Senate Majority Leader Bill Frist (R-Tenn.)

Costs for Bush’s Medicare plan continue to rise — from an estimated $375 billion to $570 billion — in reality, figures which have raised the ire of Bush supporters. One of the administration’s stated goals is to create “long-term financial security” for the Medicare system. However, the $400 billion set aside over the next 10 years for the prescription drug benefit will not be sufficient in the next decade.

This new Medicare plan will create an additional individual tax burden of $1,000. With the current $521 billion deficit for fiscal year 2004 and potentially permanent tax cuts, where will the money come from?

Furthermore, three-fourths of the $6.4 million “dual-qualifiers” — those who qualify for both Medicare and Medicaid — will see reduced benefits under this new program. The new program would raise the poverty line from $8,980 per year to $12,000 per year. Also, the co-payments for prescription drugs, currently $2-5, would increase proportionally to the increases in the cost of patient drug consumption.

In addition, current proposals would undermine existing state programs aimed at lowering the high cost of prescription medications. In Wisconsin, the state government negotiates bulk purchases with drug companies, lowering the overall costs for individuals. The government would be unable to bargain after the new Medicare policy takes effect.

As for the prescription drug benefit, full coverage will only be offered to those who choose more comprehensive plans, either raising out-of-pocket costs or forcing seniors to choose prescription drug benefits at the cost of others.

Furthermore, the plan only covers prescriptions with annual costs less than $2,250 or more than $3,600, leaving patients to cover any costs between these two benchmarks. Although all seniors qualify for prescription drug subsidies, they would only defray the costs 10-25 percent, despite an estimated annual increase of at least 10 percent.

Finally, this would do little to solve the underlying problems of the health care system in the United States. Pharmaceuticals are given 20-year patents with no price regulations, ensuring high prices for the newest, most effective drugs. HMOs continue to have free reign in determining the care received, when patients receive it, and who they receive it from. There are no regulations determining which procedures can be considered “experimental,” and therefore not covered by the health plan.

Bush called effective, comprehensive health care for seniors the “binding commitment of a caring society.” For once, I agree. But this is not the way in which to do it.

GOP

In election years, Democrats and Republicans alike raise a ruckus about the issues in which they feel they are strongest. Something especially interesting has occurred in the last three years, however, that has changed this typical process: the Republicans have usurped all the Democratic issues.

The characteristic strongholds of the Republican Party have been upheld. Our defense budget has grown, the economy is rebounding spectacularly as a result of Bush’s tax cuts, and social issues, such as abortion, have started to lean in our direction. But now President Bush has passed new Medicare initiatives. Who would ever have thought the Republican Party would be the new champion of health care for everyone?

This hasn’t happened without reason. While some may criticize the large size of President Bush’s new Medicare prescription drug coverage plan (recently passed), they neglect to mention that the Democratic plan was up to twice as large in certain versions.

The American people have recognized that big government spending doesn’t solve America’s social problems. Even the AARP, a traditionally liberal representative group for seniors, switched tracks completely and recognized Bush’s Medicare drug plan as the best thing for America’s seniors.

Many people have focused solely on Bush’s Medicare drug plan while neglecting some of his most innovative and highly effective new health care initiatives.

First, President Bush has proposed the creation of Health Savings Accounts. These completely tax-free accounts could be formulated by anyone in the United States under 65 years of age, which is around 250 million people. The accounts allow for deposits of up to $2,000 a year for individuals and $5,150 for families.

Any funds not used in one year are rolled over to the next year with tax-free interest. The funds can be used to pay for any out-of-pocket medical expenses, insurance premiums in times of unemployment, and any medical expenses in retirement.

Second, in an effort to lower the cost of health insurance for the underprivileged, President Bush has proposed tax credits in the amounts of $1,000 for individuals and $3,000 for families. These credits, which go to individuals without access to employer based insurance, are totally refundable. Even people that owe nothing in taxes would receive assistance. The credits are also advance-able, which allows them to be applied directly to health care premiums. These tax breaks make purchasing and maintaining one’s own health care policy more affordable for those without access to the same benefits offered to people who receive their care plans through their employers.

Third, the President has proposed legislation allowing small businesses to band together in Association Health Plans. This innovative idea would allow business with small numbers of employees to lobby health insurance carriers together, and with their collectively larger numbers, achieve lower premium rates for their employees and their families.

Lastly, President Bush has enacted medical malpractice reform. Malpractice insurance is a skyrocketing cost for doctors, but instead of incurring the cost themselves, the tremendous burden is passed onto patients.

By limiting the outrageous settlements imposed upon doctors in our burgeoning lawsuit crisis, the cost of medical care will go down sharply for patients.

Thus, the Republican Party has become the champion of those in America that desire better health care for all. This coming election will prove that Americans still trust in the fiscal responsibility of the Republican Party, our strong stance on America’s defense, and for the first time, our ability to deliver on promises like better health care for all that the Democrats have been harping about for decades with no result.