The Medicare reform promoted by President Bush and barely passed by a Republican-controlled Congress was a bonanza for the private sector, from insurance companies running private care plans to pharmaceutical companies that benefited since the federal government was prohibited from negotiating price cuts on medicines through bulk orders.
Now the balance swings slightly toward the beneficiary. Physicians who saw their compensation shrinking will now be less likely to reject those patients insured by Medicare. The new law eliminates part of the subsidies to insurance companies, using that money to now guarantee more physician options for Medicare beneficiaries. Although physician reimbursement was the most hotly debated issue, the new law also cuts copayments, stimulates competition among private plans, and reduces costs in the long run.
The legislation will not hinder the growth of private plans like Medicare Advantage, nor will it weaken the original program either. This upsets the White House, which used Medicare reform to promote medium and long-term privatization.
We applaud the congressional override. Medicare is a successful program whose mission is to meet the medical needs of retirees and its other beneficiaries, not to help private industry.
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