Monday, 2 April 2007

Does Congress Have To Choose Between Coverage For Children Or Coverage For Seniors?

Over the next 5 years, legislators want to increase spending for children’s health insurance by as much as $60 billion. The problem is that current Federal budget rules require all increases to be paid for with tax increases, cuts in other programs, or both.

One program on the chopping block is government reimbursement for Medicare Advantage plans, which helps seniors pay for care regular Medicare does not cover. Cutting spending for Medicare Advantage reimbursements could save $65 million in 5 years, but would leave seniors paying for more of their care.

“It’s getting to the point where you are going to have to ask the dreaded question: Is it children or the elderly?” said an analyst from the Urban Institute. “The way we have allocated our spending, it’s coming down to an either-or proposition.”

Some lawmakers proposed cutting spending on managed care plans. Both the insurance industry and the White House are opposed to the idea. They want Congress to find different ways to pay for children’s insurance, the Los Angeles Times reported.

“I don’t think a choice between adequate care for seniors and adequate care for kids is the right debate.” said Health Net CEO, Jay Gellert. “I think that is a false choice, and each program has to be debated on its own merits.”

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Posted by Insurance Quote at 4:22 PM in Senior Insurance