As part of his final budget proposal, released
Monday, President
Bush revealed his plan to begin means-testing
for the Medicare
Part D prescription drug benefit.
The change would be very
similar to the means-testing
implemented for Part B by
the
Medicare Modernization Act of 2003 (MMA),
which determines
beneficiaries' premium levels
based on their previous year's
income. Health care advocates argue that making
these programs
more expensive for wealthier
beneficiaries, who tend to be
younger and in better
health, undercuts their social insurance
nature. They expect many higher-income
recipients to ultimately
opt out. In turn, costs will
rise for the millions of middle
and
lower-income seniors who rely
on the affordable coverage
Medicare provides.
Additionally, if income thresholds
for
increased premiums are not
scheduled to rise with inflation,
means-testing could apply to
middle-income seniors over time.
"This is another attempt by
this Administration to privatize
Medicare," said Edward Coyle,
Executive Director of the
Alliance
for Retired Americans. "Means-testing Part D is
the next
step down a slippery slope that undermines our
social insurance
programs."