Senate Discussing Expansion of Medicare and Medicaid

Posted in Health Insurance

December 9th, 2009

As a part of Senate’s ongoing work on the health care bill, they are now discussing ways to expand the Medicare and Medicaid programs. In closed-door negotiations among 10 Democratic senators (five moderates and five liberals), proposals have emerged to break a deadlock that has managed to slow the Senate’s action on the entire health bill.

Proposed Expansions to Medicare and Medicaid

Among the negotiations that took place on Monday, were the following:

• Age adjustment for Medicare: Currently, the starting age to receive Medicare benefits is 65. However, one proposal being considered by the small panel is to open the program up to people ages 55 to 64 if they can’t find coverage elsewhere. The proposal would allow them to purchase coverage at subsidized rates under the program.
• Income qualifications adjusted for Medicaid: One scenario for Medicaid is that those with incomes up to 150 percent of the federal poverty level (currently at $22,000 for a family of four) would qualify for the program.

Why Discuss Expanding the Programs?

The reason that the Democrats are discussing an expansion of Medicare and Medicaid is to come up with an alternative to an extensive government-run plan (public option). Right now, the senators are divided on the issue and need trade-offs to back them up.

As for the public option, one proposal recently on the table has been to empower the government’s Office of Personnel Management to come up with a new national health plan. With its power, the office would negotiate terms with private insurers and then contract with nonprofit organizations to run the program.

Trying to remain focused on the ultimate goal of the new legislation is what’s causing a struggle for the Democrats. They need to control the growth of health-care costs while expanding insurance coverage to low- and middle-income families.

What do you think would be a good way for Senate to cut health care costs and expand insurance coverage?