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February 24, 2000
ROCKEFELLER SAYS HCFA ANALYSIS SHOWS DANGER OF BREAUX-FRIST MEDICARE PLAN
— Medicare Premiums Would Increase by Nearly 50% —
WASHINGTON, D.C. —U.S. Senator Jay Rockefeller today reacted to the Department of Health and Human Services' analysis of how Medicare premiums would be affected by the Breaux-Frist reform plan. The analysis, which was prepared by the Chief Actuary at the Health Care Financing Administration, showed that their plan would increase Medicare Part B premiums by 47 percent. Rockefeller issued the following statement:
"Senators Breaux and Frist have said they are still revising their plan, but this independent analysis provides the first clear and compelling evidence of the dangers of their plan.
"Without question, seniors would be forced to pay considerably more under this reform plan. Each of us seeking to reform Medicare must be accountable for the consequences of our proposals. We cannot avoid an honest discussion of the policy implications of reform or we won't produce good policy. While the sponsors suggest they could make changes that would reduce the dramatic premium hike, the fact is, the program they have put together is based on a 47 percent increase in Medicare premiums. It is unclear how they could reduce the premium increase in their proposal and still accomplish all that they are promising.
"At a Senate Finance Committee hearing this morning, supporters of the Breaux-Frist plan said that a 50 percent increase in premiums is not unusual because Congress increased premiums by 24 percent in 1997. Not only was that premium increase phased-in over ten years, unlike the Breaux-Frist approach, but it is absurd to suggest that because we hit seniors in the pocketbook the last time we revised Medicare, it's okay to do it a second time.
"The fact of the matter is, for Medicare reform to work it must spread the costs responsibly among beneficiaries, providers and taxpayers. We can now see that the Breaux-Frist plan places a dramatic and unnecessary financial burden squarely on America's senior citizens without offering them any guarantee of reliable and affordable care.
"Few if any health policy experts would question the independence the HCFA actuary. He's known to be conservative and credible, and we would be ill advised to dismiss his analysis."
A copy of the HCFA report is available upon request.
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