Medicare, Not Social Security, May Be Real 'Problem Child' Analysts Warn That Nation's Health-Care Safety Net for Seniors Is Inmore Urgent Need of Lawmaker Attention

By Francine Kiefer, writer of The Christian Science Monitor | The Christian Science Monitor, February 18, 1999 | Go to article overview

Medicare, Not Social Security, May Be Real 'Problem Child' Analysts Warn That Nation's Health-Care Safety Net for Seniors Is Inmore Urgent Need of Lawmaker Attention


Francine Kiefer, writer of The Christian Science Monitor, The Christian Science Monitor


It's one of the maxims of Washington: The tough problems are often addressed last, while the easier ones seem to get all the attention. That's the way it's shaping up with reforming Medicare, the problem child of America's entitlement programs for senior citizens. Next to its big brother, Social Security, Medicare is simply too difficult to handle - even though analysts agree it's the more urgent concern.

The Medicare trust fund, for instance, is expected to go bankrupt around 2012. Social Security, on the other hand, still has decades left, and isn't expected to reach insolvency until 2032. But Medicare is far tougher to fix than the federally funded retirement program, and that's why President Clinton is revving up the political engines to "save Social Security first." This doesn't mean Mr. Clinton has no plans for Medicare. He's asking Congress to set aside 15 percent of projected budget surpluses to gas up the trust fund that serves 39 million Americans. He says this would extend the life of Medicare to 2020. But as a senior aide to the president admits, "it's a real long shot for anything to happen on Medicare this year, other than securing some of the surplus." The problem with Medicare reforms, the aide explains, "is they are more ambitious, complicated, and immediate than the Social Security reforms." For one thing, the government's medical assistance for the elderly has a double burden to bear: increased medical costs combined with a growing number of older Americans. Social Security only has the demographic surge to consider. While the overall choices for the two programs are the same (increase taxes, cut benefits, or change the system), it's the complexity of the Medicare system that almost repulses reformers. Consider, for instance, the 111,000 pages of rules and regulations for Medicare and the pricing for 7,000 different medical procedures. THAT complexity, says Deborah Steelman, a Republican member of the government's bipartisan commission to reform Medicare, is one of the reasons that "no one likes to report on it, write about it, or talk about it." But that is the task of the commission and its 17 members, who were appointed by Clinton and congressional leaders. They are set to issue a report advising Congress and the White House on March 1. According to Ms. Steelman, about 10 of the members can broadly support a plan by commission chairman John Breaux, a Democratic senator from Louisiana, to have Medicare subsidize health-insurance premiums instead of its current fee-per-service system. Under this set-up, Medicare would pay seniors a benefit to buy insurance they would select from a menu of options. Beneficiaries could expand their coverage by paying additional premiums. …

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