Ehrlich on Washington column, September 24, 1995

1407 York Road, Suite 304 Lutherville, Maryland 21093 NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 315 Cannon House Office Building Washington, D.C. 20515 EHRLICH ON WASHINGTON By Congressman Robert L. Ehrlich, Jr. Week of September 24, 1995 BEWARE THE MEDAGOGUES Last week the House leadership unveiled its long-awaited plan to preserve and protect Medicare. As promised, the plan increases per beneficiary spending each year from $4,800 in 1995 to $6,700 in 2002. At the same time, the plan reduces the cost of the current, bureaucrat¬ laden system by a total of $270 billion, thereby avoiding the impending bankruptcy of Medicare forecasted by President Clinton and his Medicare Board of Trustees. The plan offered by House Republicans includes the following components: * Medicare recipients will be able to choose from a series of new healthcare options— including managed care, medical savings (“Medisave”) accounts, and provider-sponsored networks. Seniors wishing to keep their existing Medicare coverage will be free to do so. A poll recently conducted by the Los Angeles Times revealed approximately six out of ten Americans favor this change to the current system as a means of reducing Medicare costs. * The plan will mean lower payments to hospitals and doctors, where costs are currently increasing at twice the cost of inflation. * Wealthier seniors will pay more in monthly premiums than middle class seniors. Individuals earning $75,000 per year and couples earning $125,000 per year will see the federal subsidy of their Part В premium phased out.