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NATIONAL CENTER FOR POLICY ANALYSISHOME / DONATE / ONE LEVEL UP / ABOUT NCPA / CONTACT US
| Reforming Medicare | |
A debate on how to reform Medicare is on the horizon. President Bush has outlined the sort of reform he will support: one that allows beneficiaries to remain in traditional Medicare or to switch to private health plans with the added carrot of prescription drug coverage. Medicare reform is also a priority for Senate Majority Leader Bill Frist, suggesting that action may occur soon. Reform ultimately boils down to two questions. (1) Who will pay for retirees' medical care? (2) Can we contain the growth in the amount we spend? To stem the growth in Medicare spending, we must consider all reform options. In addition, we have to think carefully about how to divide the burden between taxpayers and beneficiaries. In this paper, we review the case for reform, survey recent Medicare changes and reform proposals, estimate the cost of the prescription drug proposals, and analyze several short- and long-term Medicare reform options. |
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