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Medicare games show why confidence ebbs

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Friday, Jul 11, 2008 - 12:19:24 am CDT

If Congress wants to know why it recently recorded the lowest confidence level ever measured by the Gallup organization for any U.S. institution in the past 35 years, its handling of the Medicare program would be one place to start.

The Senate finally got around to reversing an automatic 10.6 percent cut in Medicare reimbursements for physicians on Wednesday, but not until Republicans and Democrats finished playing a game of chicken that most voters neither understand nor want to.

The American Medical Association called the latest standoff the “Medicare Meltdown.” The term fits. This time the blame falls on the Senate. The House approved its version of the legislation weeks ago.

Congress ordered the automatic cuts in Medicare rates years ago, but it’s never allowed them to go into effect. There’s little debate that if there were cuts, the ramifications would be drastic. As reported in a Journal Star story last month, some local doctors would stop taking Medicare patients because they couldn’t afford it.

Technically, the cuts were to take effect July 1. But the administration granted the Senate a little more time by agreeing to delay processing claims for 10 business days. That stopgap solution was bad enough. But it’s better than the mess created two years ago when the cuts actually went into effect for a short time. Congress restored the cuts retroactively, but the bookkeeping was horrendous.

The rhetoric that flew around the Senate chamber was revealing. “If we don’t get 60 votes, the Republicans are going to have to live with that,” said Majority Leader Harry Reid.

Well, the Democrats would have to live with that too, along with every other American.

Meanwhile, as political one-upmanship continues, major structural problems with Medicare continue to be ignored. Medicare’s board of trustees said recently that the program’s trust fund will be gone by 2019.

Long-term solutions are needed in the program. Most imperative is the need to reduce fraud. A recent congressional investigation revealed that con artists used the identities of dead doctors to fraudulently collect Medicare reimbursements. The loss in that particular scam might be as much as $923 million. A Government Accountability Office review found that Medicare improperly paid $900 million for medical equipment in fiscal 2004.

Members of Congress seem to be deluding themselves that Americans are keeping score with them at home. Wrong. The vast majority of Americans want effective problem-solving and management competency from their government.

Sen. Ben Nelson deserves credit in the recent Medicare struggle for winning approval for a provision that allows rural hospitals to continue providing off-site laboratory testing.

But the overall impression left by the Medicare squabble is negative. As long as Congress handles its responsibilities in such a sloppy and sluggish fashion, its approval rating is likely to continue to slide.


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whatever wrote on July 11, 2008 5:10 am:
" Governing from the "top down" in a country as vast as the United States is inefficient at best. "One size fits all" legislation is counter productive and flys in the face of a free people ruling themselves. It's time to "reinvent" the United States as a confederation of states where the federal government sets laws regarding national security, environmental and trades laws and policies and let the states or groups of states with similar cultures and outlooks set the laws that work best for them. "

Zoomie wrote on July 11, 2008 7:25 am:
" And they call it a "liberal media"!!! Here's another version of the same story: a decade old law mandates if Medicare expenses exceed an artificially low prediction, cuts must automatically be made the next year. Previously, both parties would vote to ignore this rule and block the cuts. This year, fiscally responsible Dems demanded the increased cost of ignoring the cuts be paid (not added to our national debt, as has previously happened). They said the restored rates would be paid by decreasing the money going to Medicare Advantage, a GOP-designed corporate welfare program which privatizes a portion of Medicare by paying private insurance companies to pay Medicare at cost plus 17% (the 17% was necessary because no private insurance company would participate at Medicare rates, claiming they couldn't made a decent profit, so the GOP increased the rates by 17% -- which comes out of Medicare's overall budget, reducing the dollars available to the program -- to give them an incentive to join). Insurance companies have since engaged in tactics of cherry-picking only the healthiest and wealthiest seniors, leaving less for the sicker and poorer. The GOP filibustered, blocking the Dem plan. So Dems stood their ground, and let the medical industry make clear to seniors the coming trainwreck was being caused by GOPers protecting insurance company profits. At the last minute, enough GOP Senators caved to override the GOP filibuster, and the bill passed! A success for the Democratic Party AND the American people (though a loss to the insurance industry's bottom line)! "

BPete wrote on July 11, 2008 12:54 pm:
" Sometimes the level of understanding of complex issues by the press is astounding. Your editorial of 7/11 about the Medicare debate in the Senate is a great example of the lazy reporting seen recently.

The “game of chicken” that you refer to was about how to pay for the elimination of this fee reduction. The bill paid for this elimination of the fee reduction by reducing the amount that is paid to insurance companies that underwrite Medicare Advantage plans to the level that Medicare receives. Currently they receive 13% more than Medicare gets. That reflects the insurer’s influence over Congress earned by campaign contributions (bribes in any other business). The majority of the Republicans in the Senate and the Administration were against cutting the extra amount paid to insurers. The House voted for this measure overwhelmingly, but they apparently don’t have that kind of loyalty to insurance companies as the Senate Republicans have.

The Republicans were successful in killing this bill by one vote before the July 4th recess because the bill would have stopped this flagrant special interest provision. That prompted a massive campaign by the Democrats and by the AMA to correct this vote after the recess. It even brought Ted Kennedy out of a sick bed back to Congress to vote last Wednesday. The push worked and the bill was passed (69 to 30).

Frankly it was one of the more effective efforts I have seen in a long time that overcame a special interest and stopped a waste of money being sent to insurance companies.

I am very proud of the Senate – its Democrats and a good number of Republicans. Our Senator Nelson voted for the bill (actually voted to end the threatened filibuster) and our Senator Hagel voted against it (in favor of the insurance company’s interests).

With just a little bit of effort the LJS could have made many people proud of most of our folks in the Senate for a change. We haven’t had many moments like the vote last Wednesday. "

SB wrote on July 11, 2008 1:08 pm:
" Medicare’s a fraud in the biggest sense of the word. Ask a senior citizen about their day and all they will talk about is ‘going to the doctor because my knee hurt (but I was really just bored) and how the doctor prescribed a new drug to numb my pain, but I need to take another drug to offset the diarrhea side effects , and I need another pill for the high cholesterol I’ve had my whole life and never been a problem with, but it’s okay because medicare will pay for all the prescriptions’ and in the mean time they are paying high premiums and the average taxpayer’s taxes are diverted from needed services to pay bottom line pharma companies. It is a high risk program based on the pharmaceutical drug addiction of the US and the government doesn’t have the means, know-how, or ambition to control. "

Zoomie wrote on July 11, 2008 1:52 pm:
" SB failed to mention all those drugs Medicare is paying for were part of a GOP sellout to big Pharma several years ago, using hardball (indeed, rule-violating) tactics. Democrats that year had an alternative program which would have provided seniors with assistance with drug bills, but saved us tens of billions by pooling seniors and mandating drug companies sell to Medicare at the same rate they sell to their lowest buying customer (a process long in use by the VA and DOD). But that wouldn't have supplied the necessary corporate welfare! "

yepthatstrue wrote on July 11, 2008 2:05 pm:
" Whatever makes a good point. But that is sort of the us constitution now isn't it? However, the politicians have decided to give money to states based on certain conditions. We have become too dependent on fed money. We pay a heck of a lot of federal taxes yet we don't see a lot of it back here in ne. "

Zoomie wrote on July 13, 2008 3:59 pm:
" Actually, yepthatstrue, Fed monies coming back to the states have long favored Red and rural states over Blue and urban states. For example, the state geting the most Fed money per capita is Alaska (they get back $1.85 for every $1 in taxes paid); worst states include NY, CA and CT, dispite the fact they overwhelmingly pay the highest Federal taxes...funny how conservatives love that "rich deserve the biggest tax breaks 'cause they pay the highest amount in tax" argument when it favors the rich, but not when it would favor Blue states! "