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May 22, 2013
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The Marvel That Is MedicarePosted on Jul 29, 2009By Marie Cocco Happy Birthday, Medicare. It’s a fine time—perfect, in fact—to celebrate the government-run, taxpayer-supported colossus in the American health care system that turns 44 this week. Medicare has done all it was supposed to do, and more. It thrives despite apocalyptic warnings from its original opponents that “socialized medicine” would hamper doctors, hospitals, patients—perhaps even doom the entire American health care system. Medicare is exceedingly popular and remarkably well-functioning despite its current critics’ claims that it is singularly wasteful, out of control in some never-specified way or, at the very least, holds the potential to bankrupt us all in the next generation. Medicare is where political posturing runs headlong into historical truth: It is, along with Social Security, the most successful government program—other than its unrivaled military—that the United States has ever created. And it has delivered for elderly people what President Barack Obama and at least some Democrats say they want to deliver for the rest of us: universal coverage ensuring that people with medical problems will not become impoverished by their illness, with patients offered a guaranteed set of services and a choice of private doctors, hospitals and other practitioners when they need treatment. Advertisement In other words, it delivers the opposite of what the private insurance industry has been providing. And it is doing so with a better track record of controlling costs. Beginning in 1997, the growth in Medicare’s cost per beneficiary has been slower than the cost escalation in coverage delivered by private insurers. Between 2002 and 2006, for example, Medicare’s cost per beneficiary rose 5.4 percent, while per capita costs in private insurance rose 7.7 percent, according to MedPAC, an independent agency charged with advising Congress on Medicare issues. So why would Congress create a new health insurance system that doesn’t have a Medicare-like public plan for consumers to purchase? Because conservatives, Democrats among them, never let the facts get in the way of their ideology. The Senate, in particular, seems intent on creating a new private health insurance “cooperative” that has never been tested, has no track record of delivering quality coverage at an affordable price, and which consumers would have to learn to navigate. Forty-four years ago, on July 30, 1965, President Lyndon Johnson signed the law creating Medicare. In its way, Medicare was a testament to our failure to create a national health insurance system that would cover everyone. With former President Harry Truman looking on, Johnson said the need was great, and urgent. “There are more than 18 million Americans over the age of 65. Most of them have low incomes. Most of them are threatened by illness and medical expenses that they cannot afford.” At the time, about half of the elderly had no health insurance—they were too old and too likely to get sick, so the private market simply wouldn’t insure them. The elderly were the demographic group most likely to live in poverty, and about one in three older Americans were poor. Blacks and other minorities could not receive treatment in whites-only medical facilities, discrimination that was barred by Medicare. Now the elderly are among the best-insured Americans, with upward of 95 percent covered by Medicare. The rate of poverty among those 65 and older is under 10 percent. The decline in elderly poverty began with the creation of Social Security—but it accelerated, according to Census Bureau data, only after Medicare coverage began. “The need for this action is plain,” Johnson said in signing the law in Truman’s hometown of Independence, Mo. “And it is so clear indeed that we marvel not simply at the passage of this bill, but what we marvel at is that it took so many years to pass it.” Now we marvel again at the long and contentious legislative path that health care revision is taking. We hear the same arguments against a national health insurance plan that were made nearly half a century ago. But now we have Medicare, and its demonstrated history of delivering exactly what Johnson said it would. And the marvel of our own time is that we ignore this success, while promoting untried alternatives that may well fail. New and Improved CommentsIf you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy. |
By ardee, May 18, 2011 at 3:41 am Link to this comment
glider, July 30, 2009 at 5:50 am Link to this comment
It might be a good advertising campaign for the health care reform movement to run a collage of the old anti-medicare advertisements and compare that to the actual result.
True that…but how does one take out full paid ads with no organization, no money and no power. Seems to me that Medicare is a success, despite the criminal actions of a few who take advantage of the govts. typical lack of oversight to commit fraud.
It is a unique feature of our nation that people swallow the for-profit industry bullshit and make it their own. Victims who so willingly rush to the slaughter. Of course, the fact that our leaders in govt. are complicit if only by their silence doesn’t help at all.
Report thisBy surgical technician salary, May 17, 2011 at 9:39 pm Link to this comment
Medicare has been a point of contention for way too long and we need to look beyond the partisanship to fully realize it’s potential. In recent developments House Republican freshmen admit that their so-called “MediScare” attacks on Democrats helped them win a big majority in 2010. Now, they say, it’s time to let bygones be bygones. Nearly a dozen House Republican freshmen held a press conference outside the Capitol to “wipe the slate clean,” and “hit the reset button.” As medical surgical practitioner, I’ve seen too many our citizens fall by the wayside due to lack of medical financial support. It’s time to move on.
Report thisBy S. Bethel, July 31, 2009 at 3:01 pm Link to this comment
(Unregistered commenter)
If you lower the eligibility age of Medicare to 50,before disease gains tractability, add Child Medicare till the age of 21 and an Acute Medicare for those ages in between, the nation will greatly reduce medical costs, acute care and emergency, due to prevention alone. This is the simple cost-benefit ratio, not to mention greater productivity from a healthy population.
Arguments against the government bogey man and universal health insurance are specious and dysfunctional, unless you want to discuss the back-door tax that Republicans and “counterfeit conservatives” have levied with the $11.6 trillion national debt. The “free lunch” they promised, no new taxes and tax cuts, in order to gain power, costs this country over $3.5 trillion per decade in debt interest payments; from 3 cents in 1980 to over 14 cents of every tax dollar today. That is a 14% share of every tax dollar without denting the principal.
The socialized losses of the “free market” meltdown, trillions, contrasted with the “efficient” free market bonuses for subsidized bankers, billions,leads to the twisted logic that universal healthcare costs too much.Until we value people before money, we the public, will continue to lose both.
Report thisBy fwdpost, July 31, 2009 at 2:42 pm Link to this comment
(Unregistered commenter)
Prima Facie offers a false statement when it says you must visit your doctor every 30 days under Medicare. I visit my primary care physician once a year for an annual checkup, and my cardiologist (I have six prescriptions) every six months. There are too many lies about Medicare, which pays far less than private plans for coverage. A private plan will authorize $10,000 for an operation that Medicare will only pay $4,000. Both are accepted. And if you had no insurance, they would charge $20,000.
Report thisBy BobZ, July 31, 2009 at 12:02 pm Link to this comment
I have no complaints with Medicare but then I also use Kaiser Senior Advantage for which I pay an additional fee, but it has been worthwhile, as it provided a seamless transfer of my health care from regular Kaiser coverage to the Advantage plan. Medicare needs further automation though as I still get a hard copy every year of my coverage which is totally unnecessary as I could get that online. Also I get these prescription drug statements every month which are also unnecessary. Medicare has been especially lifesaving for my mother-in-law who just gets by on Social Security. Medicare and Social Security overall are well run programs so it proves that the government can do a lot right. It is stupid for Republican’s to constantly bash the government while ignoring the damage Wall Street has done to us in the name of free market capitalism.
Report thisBy HC, July 31, 2009 at 11:18 am Link to this comment
(Unregistered commenter)
Permit me to clarify and reiterate… The less-than-total fee coverage of Medicare, the need for “Medi-Gap” insurance, and other inefficiencies Medicare is accused of stem not from its being a government function, but rather being yet another example of private interests arranging things to their advantage to feed off the public trough. As I said previously, Medicare was built upon the highly expensive, highly inefficient cost-based, fee-for-service model of medical care (because that is all the AMA would allow), and was notably devoid of innovation in financing and organizing medical care, again because the AMA and those of similar sentiment (including the American Hospital Association) would not permit any change in the game that has worked so well to its favor in the absence of the countervailing influence of government (see Medicare Part D as a very recent illustration of this).
Inevitably government is excoriated for this, when in actuality it is the private sector that is responsible for the staggering inefficiencies, inequities, and resistance to meaningful health care reform in this country, while placing its financial interests above the health of the country.
Also as I said previously, Medicare compares poorly to what other societies THROUGH THEIR GOVERNMENT provide to their citizenry, it’d be illustrative to see what they have achieved having pushed cynicism, ideology, misconceptions, and straw men aside to get down to the serious work of providing health care to all members of their respective societies.
Report thisBy prima facie, July 31, 2009 at 10:13 am Link to this comment
Oh, Medicare is a huge success. If by success you mean a bloated, inefficient mess that doesn’t pay its bills in a timely fashion and is rapidly losing contracted providers.
And we’ll never know what it really costs. Medicare funding, like war spending and other welfare programs, are off budget! Its true costs aren’t reflected in the deficit—even in the mythical Clinton “balanced budget.”
Medicare only pays 80 percent of its “allowed” fee for a given procedure, which rarely covers actual costs and which almost requires a patient to carry secondary insurance to make up the difference. You think insurance providers are notorious for dragging their feet on authorization? You ain’t seen nothing yet.
Medicare also requires a patient to see his doctor every 30 days for continuing treatment, even if all you need is a blood-pressure prescription refill or to gain approval for more physical therapy following surgery.
And then there’s the third-party agent that handles authorizations and payments. If a provider gets paid within three or four months of an actual procedure, he’s ahead of the game. Submit the wrong treatment code? Sorry, pal, pay attention next time.
Because of these and other requirements, more and more doctors, therapists and other providers are rejecting Medicare patients. Why take that business if you only get a fraction of what you’re owed and you don’t see payment for months on end? It’s not worth it.
Heaven forbid other government functions operate the same way. Oh, wait…
Report thisBy prima facie, July 31, 2009 at 10:09 am Link to this comment
(Unregistered commenter)
Oh, Medicare has been a huge success. If by success you mean a bloated, inefficient mess that doesn’t pay its bills in a timely fashion and is rapidly losing contracted providers.
And we’ll never know what it really costs. Medicare funding, like war spending and other welfare programs, are don’t off budget! It’s true costs aren’t reflected in the deficit—even in the mythical Clinton “balanced budget.”
Medicare only pays 80 percent of its “allowed” fee for a given procedure, which rarely covers actual costs and which almost requires a patient to carry secondary insurance to make up the difference. You think insurance providers are notorious for dragging their feet on authorization? You ain’t seen nothing yet.
Medicare also requires a patient to see his doctor every 30 days for continuing treatment, even if all you need is a blood-pressure prescription refill or gain approval for more physical therapy following hip surgery.
And then there’s the third-party agent that handles authorizations and payments. If a provider gets paid within three or four months of an actual procedure, he’s ahead of the game.
Because of these and other requirements, more and more doctors, therapists and other providers are rejecting Medicare patients. Why take that business if you only get a fraction of what you’re owed and you don’t see payment for months on end? It’s not worth it.
So, yeah, Medicare is wondrous success. Heaven forbid other government functions operated the same way.
Oh, wait…
Report thisBy HC, July 31, 2009 at 8:48 am Link to this comment
(Unregistered commenter)
For certain the laudatory purpose of Medicare to provide social insurance for at least a segment of the population should not be minimized, but its example must not be overextended, and it must be tempered with the realization that Medicare could have been so much more than it is, and still in comparison to what other societies provide, it is still quite modest, and still terribly expensive.
The reason for this is that Medicare was built upon the conventional Blue Cross/Blue Shield reimbursement methods, and it could do nothing to reorganize the way health care was delivered. (The historical background for this extends to compromising with the strong oppostion from the AMA, and funding the Viet Nam war.) The result is that Medicare has been demonstrably lacking in innovation in the financing and organizing of health care, with a consequent lack of cost control discipline, and thus Medicare has been a major driver of medical cost inflation since its inception. Tremendous amounts of Federal money were poured into a fragmented, highly inefficient private model of care. Indeed, some sage and wry observers of health care policy have deemed Medicare “the physician income guarantee and retirement security act.”
The INTENT of Medicare for society to take care of its own through social insurance should be pursued; the EXAMPLE of Medicare in its financing and organization of care should not, we need better, more responsive, more accountable, more efficient ways to cover our population.
Report thisBy rollzone, July 30, 2009 at 12:54 pm Link to this comment
hello. i have had medicare, and been a patient alongside professional patients abusing the system. it is good that it is there. this amplifies my point a little more clearly how capitalism does not belong in our politics. there is no lobby or special interest group bringing bags of money into the legislative branch to continue the ongoing profit taking of the medicare industry. unfortunately there are insurance wagons, and health care industry lobbyists; circling the beltway with bags of monies for political favors: under the guise of reform.
Report thisBy seeitnow, July 30, 2009 at 11:48 am Link to this comment
(Unregistered commenter)
Its amazing how these lies can continued to be told in light of the evidence. Medical costs have sky-rocketed because of programs like medicare and medicaid which foster fraud and waste. Medicare is a total failure. It has led to doctors and medical facilities finding new and improved ways to defraud the taxpayer.
Report thisBy Hulk2008, July 30, 2009 at 8:28 am Link to this comment
Also don’t forget that Bill Cristol personally affirmed on The Daily Show that the military deserves “the best health care” and gets it from .... you guessed it .... the Federal government.
Report thisThere is long-standing proof that a single-payer system can and does cut costs and has the advantage of being not-for-profit. Even when private insurers are contracted to perform the claims processing for Medicare, Medicaid, and Champus the single-payer model is used fairly effectively compared to the bottom-line-only for-profit insurers.
Every true Republican would repeal Medicare in a heartbeat if possible. The only reason they don’t vocalize that desire is that it would be political suicide.
The latest novelty is the Co-Op idea - but it serves two purposes only: 1) it slows the Dem leadership and the Pres a bit 2) it will provide the Repugs a win when the idea gets poorly implemented and finally fails.
By nickmammano, July 30, 2009 at 8:27 am Link to this comment
A very important column by Cocco;the spectacular success of Medicare should be a model for universal health care. Why isn’t it? One only need look at the enormous special interest money (read BRIBES) doled out to our congressman to understand why not.
Somewere in Truthdig I read that Chairman Baucus received almost 4 million in campaign contributions from the health care industry. Baucus and his Democratic cohorts ought to be exposed for what they’re up to—selling out—bought and paid for.
And some recent polls suggest that Obama’s presidency is in some peril because of his imminent “failure” to deliver on the government option. Baucus ought to be exposed for what he is. But then they all do it don’t they?
Report thisBy Sioan Bethel, July 30, 2009 at 7:49 am Link to this comment
(Unregistered commenter)
The inability of this nation’s leadership and intelligentsia to properly frame problems coupled with politically and ideologically induced stupidity, threaten the autonomic well being of this nation
Reducing the age of eligibility for medicare to 50, before diseases gain tractability, will drastically lower acute care and emergency care medical costs all along the line. Introduce a Child Medicare program to age 21, and again medical costs will be reduced. Add an acute Medicare program for those falling between these age groups and yet again medical costs will go down.Cost-benefit analysis anyone? As Ms. Cocco underscores, the administrative infrastructure is in place, the process is proven and the customers are satisfied, why reinvent the wheel? For profit, for profit, for profit and smug satisfaction with the obstruction.
Report thisBy NYCartist, July 30, 2009 at 7:41 am Link to this comment
Good comments. I would like to point out to Marie Cocco and others, that Medicare covers disabled people,too. Medicare has been chipped away by doing:
Report this- ever increasing monthly premiums
- need to have Medigap insurance private insurance
to cover the 20% not covered by Medicare (I am
now paying $2200. year for this, or slightly
more.
-Medicare deductibles go up and up but Social
barely rises, not a rise if you consider the
increase in monthly premiums, to around $100
-Medicare trying to push seniors into private
HMOs and many of us resist.
see http://www.blackagendareport.com for lead article,
on Home Page: on the new health plan
By Jim Yell, July 30, 2009 at 7:07 am Link to this comment
(Unregistered commenter)
If we have a proper National Health Care system Medicare would be redundant, but it is also clear that the Corporate Health Industry is trying its best to destroy even a hint of National Health Care, as they have done all along.
We give our elected National Political figures the best socialized health system anywhere and the rest of the people are picked over by the for profits like a dead body being picked over by vultures. And, that is all the opposition has to offer.
Report thisBy tommy, July 30, 2009 at 6:45 am Link to this comment
(Unregistered commenter)
Successful? At what? Bankrupting an economy? Check! Closing factories and shedding american jobs? Check! Buying votes with someone else’s money? Check!
Being one whit of good for the COUNTRY? hahahahahahah
Report thisBy glider, July 30, 2009 at 5:50 am Link to this comment
It might be a good advertising campaign for the health care reform movement to run a collage of the old anti-medicare advertisements and compare that to the actual result. I am thinking this partially because seniors seem to be particularly vulnerable to the anti-health care reform smear campaign. This way they can see what the same group of con artists were saying about their precious Medicare. Maybe then we will stop hearing seniors saying that they are scared of this socialized medicine and don’t you dare take my Medicare away!
Report thisBy ardee, July 30, 2009 at 5:08 am Link to this comment
A success despite the efforts of every Republican administration to kill it, and every Democratic one to severely limit its effectiveness.
While both political parties cater to the insurance industry Medicare goes right on providing good service. Imagine what it could accomplish with a caring and concerned government behind it, aiding it with competitive bidding on drugs and such.
I have listened to the implausible comments of the opponents of health care reform and awaited a sane and literate rebuttal from the Democrats or the President. I still wait. I suspect I will be waiting as long as our leaders cater to campaign checks from lobbyists rather than to the needs of the people of this nation.
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