May 17, 2011
Dear Ms. Ryan,
Thank you for contacting me regarding Medicare. I appreciate your interest in this key component of America's healthcare system.
Since Medicare's inception in 1965, this unique program has provided the elderly and individuals with disabilities across the country access to quality healthcare services. Congress must continue to improve and protect this program in order to meet the changing needs of both Medicare beneficiaries and their service providers.
I believe that Medicare is a sacred trust with Americans. In March 2010, President Obama signed into law both the Patient Protection and Affordable Care Act, which passed the Senate by a vote of 60-39, and the Health Care and Education Reconciliation Act, which passed the Senate by a vote of 56-43, ensuring that this the sacred trust is preserved for generations to come. I was proud to support these critical bills.
With the Medicare hospital insurance trust fund expected to otherwise have gone bankrupt in just over five years, these new laws extended Medicare solvency by seven years. Premiums for thousands of New Mexicans will be more affordable as a result of eliminating unnecessary federal spending. The new laws also will close the coverage gap in the Medicare drug benefit known as the "donut hole." No New Mexico senior citizen should have to choose between paying for their medicines and buying food. Health insurance reform provided a $250 rebate check to all seniors who hit the "donut hole" in 2010. In New Mexico, 9,252 Medicare beneficiaries received this tax-free rebate.
Starting January 1, 2011, new benefits under Medicare included a 50% discount on brand-name prescription drugs under Medicare Part D for seniors who have reached the "donut hole," and a 10% Medicare bonus payment for primary care physicians and general surgeons. Additionally, the new laws invest in preventive care - including giving Medicare beneficiaries one free, yearly check-up - improves the quality of Medicare services and access to health providers, and increases transparency of nursing homes and other health care providers. The laws also fights waste, fraud and abuse in the Medicare system and refocuses Medicare on improving seniors' health, not insurance companies' wealth.
Related to this issue, you may be aware that House Budget Committee Chairman Paul Ryan (WI) released a budget proposal, House Concurrent Resolution (H.Con.Res.) 34, that includes, among other provisions, a blueprint for changes in government spending on health care plans over a ten year period (FY2012-FY2021). Representative Ryan's plan includes repeal of many provisions of the Patient Protection and Affordable Care Act, as well as drastic structural changes to Medicare and Medicaid. Specifically, this plan would cut government spending on health care by roughly $2.2 trillion over ten years, with $771 billion coming from Medicaid and $30 billion from Medicare. Representative Ryan introduced H.Con.Res. 34 on April 11, 2011, and on April 15, 2011, the House passed H.Con.Res. 34 by a vote of 253-193.
Representative Ryan's proposal would gradually increase the Medicare eligibility age to 67 and would convert Medicare to a premium support system. Under this new system, Medicare would only pay an average of approximately $8,000 - adjusted for age, health status, and income - of beneficiaries' total health insurance premiums. CBO predicts that Medicare beneficiaries participating in this system would bear a much larger share of their health care costs than they would do under the current program; as much as 43 percent more than under the current system. CBO also finds found that in the "voucher" program's first year, the typical 65-year old Medicare beneficiary's annual out-of-pocket costs would more than double - from $6,150 to $12,500, and that in later years, the increase in out-of-pocket costs would be even greater. The conversion of Medicare to a voucher system would unfairly expose seniors to significant out-of-pocket costs and jeopardize access to crucial life-saving healthcare services.
For these reasons, on May 4, 2011, I joined a group of 50 Senators in signing a letter to President Obama commending him for his opposition to the Medicare voucher system proposed in the House Republican's FY2012 budget. This letter expresses my belief that dismantling Medicare is an unacceptable means for financing tax cuts for those who are earning ten times or more than the retirement income of the average Medicare recipient. A copy of this letter was also sent to the House Majority Leader, Representative Eric Cantor (VA).
It is imperative that Congress tackle our budget deficit, but we must do so in a way that protects seniors who have paid into the Medicare system and deserve affordable and secure health care. I am committed to protecting and strengthening Medicare for our seniors and will do so as the Senate begins the process of crafting our version of the budget for FY12.
Thank you again for sharing your thoughts with me. Please feel free to contact me with your concerns regarding any federal issue by visiting my website at www.tomudall.senate.gov. For more information, you may also visit my Facebook page at http://www.facebook.com/pages/Senator-Tom-Udall/106433512869 and receive up to the minute updates through my Twitter page at http://twitter.com/senatortomudall.
Very truly yours,
Tom Udall
United States Senator
Tom Udall
United States Senator
