Medicare Reform Plan Under Fire: Democrats Challenge Republicans' Numbers

Strategic Insights -

House Democratic leader Richard Gephardt accused Speaker Newt Gingrich of playing a 'shell game' with numbers for a Medicare reform plan that does not add up. The plan, outlined by Gingrich on NBC's 'Meet the Press,' would phase out government subsidies for doctor payments beginning at an income level of about $125,000. However, Democrats argue that the average increase in premium per senior citizen by 2002 would be $84 a year, which they claim is an understatement.

Key Takeaways:

  • The Republican Medicare reform plan would phase out government subsidies for doctor payments beginning at an income level of about $125,000.
  • According to Congressional Budget Office estimates, every senior would have to pay almost $700 a year more than they do today by 2002 to make their premium costs cover as much of the Medicare program as they do today.
  • Health and Human Services Secretary Donna Shalala disputed Gingrich's numbers, stating that far steeper boosts would be needed to yield $50 billion to $60 billion from premium increases alone.
  • The proposed Medicare premium increase would cost the average senior couple $2,666 over the next seven years and $515 in the year 2002 alone.
  • The Republicans' plan aims to achieve $270 billion in savings over seven years, but Democrats argue that this target is still unattainable given the proposed premium increase.
  • Democrats have fought the proposed GOP Medicare reforms with a media blitz, purchasing television and radio ads and holding town hall meetings during the summer.

Statistics:

  • The average increase in premium per senior citizen by 2002 would be $84 a year, according to Gingrich.
  • Every senior would have to pay almost $700 a year more than they do today by 2002 to make their premium costs cover as much of the Medicare program as they do today, according to the Congressional Budget Office.
  • The proposed Medicare premium increase would cost the average senior couple $2,666 over the next seven years.
  • The proposed Medicare premium increase would cost the average senior couple $515 in the year 2002 alone.
  • Republicans aim to achieve $270 billion in savings over seven years.
  • The reported cost of the proposed premium increase would be $50 billion to $60 billion from premium increases alone.

Sources:

  • [Associated Press, Washington, Sept. 11]
  • [Rep. Richard Gephardt (D-MO) statement, Sept. 11]
  • [Health and Human Services Secretary Donna Shalala statement, Sept. 11]
  • [Congressional Budget Office report]
  • [NBC's 'Meet the Press' program, Sept. 8]