Seniors To Benefit From New Health Reform Law

By Congresswoman Debbie Wasserman Schultz

America’s “Greatest Generation” has truly seen the ups and downs of the last century. Through the Great Depression, World War II, the Civil Rights era, and the Great Society, our seniors have faced hardships and worked to defend and build our nation. America’s seniors also understand the importance of the economic and health safety net established during their lifetime.  They have earned the retirementsecurity that seniors enjoy today through Social Security and Medicare.

Recognizing the success of these programs and how they complement our society, we used them as blueprints to write the Patient Protection and Affordable Care Act, comprehensive health care legislation that will grant health security to all Americans while strengthening Medicare for future generations. This new law provides American families and small businesses more control over their health care by reducing costs, increasing choice, and instituting common sense rules that will keep insurance companies honest. At the same time, it puts our budget on a more stable path by reducing our deficit by $143 billion over the next ten years and an additional $1.2 trillion over the following decade.

There has been a lot of misinformation specifically targeted at seniors. But, let me assure you: the bill makes NO cuts to current payments or guaranteed benefits in Medicare. In the meantime, this legislation makes quality investments in seniors’ health by strengthening preventative care, prescription drugs, and the financial stability of your coverage.

Some of the most substantial changes will immediately improve Medicare for the 102,000 beneficiaries in my Congressional district. For example, in the next 90 days, seniors who hit the Medicare Part D prescription drug “Donut Hole” will receive a $250 rebate to make life-saving drugs more affordable. Then, significant discounts of 50% and higher will close the “Donut Hole” completely by 2020. This translates to typical savings of $250 in 2010, $700 in 2011, and over $3,000 by 2020.

The Patient Protection and Affordable Care Act also eliminates out-of-pocket expenses for preventative services in Medicare, so that no senior will ever have to skip a colonoscopy, or immunization because of prohibitive co-pays. In the meantime, this legislation returns fiscal responsibility and careful oversight to the program, by targeting rampant waste, fraud, and abuse. It roots out overpayments to insurance companies that are robbing the system of funds that could be used to improve benefits for everyone.  In doing so, we protect and strengthen Medicare for today’s seniors and future generations of retirees by extending the life of Medicare by an additional nine years or more.

Medicare has been a lifeline for America’s seniors for the last 44 years, and for all 44 of those years, Democrats have been staunch supporters of the program. One of the most misleading suggestions out there is that this legislation we passed will take away Medicare Advantage from seniors satisfied with their coverage. That is simply not true. Rather, the Patient Protection and Affordable Care Act requires these private plans to give seniors the security they deserve – by ending overpayments, waste, and high cost-sharing for expensive medical procedures. Currently, subsidies to fund Medicare Advantage cost $11 billion a year; this results in $90 in higher premiums per couple for traditional Medicare beneficiaries to cover the cost of Medicare Advantage.  The Patient Protection and Affordable Care Act requires that all Medicare Advantage plans spend at least 85% of revenue on medical care and improving the quality of care, rather than on profits and overhead costs and no longer be permitted to charge more than traditional Medicare for expensive services. And most importantly, high value Medicare Advantage plans are rewarded with bonuses for high quality of care. So if your Medicare Advantage plan is providing quality care for beneficiaries, your plan will thrive under this bill.

This legislation also provides immediate help for older Americans age 55 to 64, who have become the fastest growing demographic of the uninsured in America.

This legislation ends discrimination for pre-existing conditions. This is vital for older Americans between retirement and Medicare, when they are most likely to have acquired a pre-existing condition during the course of their lifetime and are struggling to find insurance on the individual market. Beyond denying coverage, insurance companies can set premiums based on age, and in some markets right now, older Americans can pay as much as 11 times the premium costs of a young individual! Our bill lowers this ratio to a maximum three times more. The Patient Protection and Affordable Care Act also establishes a $5 billion temporary re-insurance fund for employers to cover early retirees age 55 to 64 – thereby encouraging employers to keep insurance for workers even after they retire.

The Patient Protection and Affordable Care Act does all of this without cutting Medicare’s guaranteed benefits that are so important to the health and vitality of our Greatest Generation.