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AARP Endorses Legislation to Combat Age Discrimination

AARP Exec. VP Nancy LeaMond Cites Sen. Harkin, Rep. Miller Companion Bills as “Important First Step” in Remedy to “Misguided” Court Decision

Washington, DC – AARP has joined key congressional leaders to endorse Senate and House legislation introduced Oct. 6 to defend the civil rights of older workers in the workplace. The legislation offers a remedy for the Supreme Court’s age discrimination decision last June in the case of Jack Gross v. FBL Financial Services, Inc.

AARP endorsed the “Protecting Older Workers Against Discrimination Act” at a Capitol Hill press conference today with chief sponsor of the legislation Chairman Tom Harkin of the Senate Health, Education, Labor and Pensions (HELP) Committee; lead co-sponsor Chairman Patrick Leahy of the Senate Judiciary Committee; and Chairman George Miller of the House Education and Labor Committee. The bill is in response to the 5-4 Supreme Court ruling in Gross that older workers bringing employment discrimination claims must meet a higher standard to prove their claims of illegal bias than others who have been subject to unfair discrimination at work, such as discrimination based on race or sex. The Age Discrimination in Employment Act (ADEA) bars discrimination against workers 40 years of age or older.

“AARP commends Chairmen Harkin, Leahy and Miller for their critical work to put an end to age discrimination in the workplace,” AARP Executive Vice President Nancy LeaMond said today. “Their bill will protect older workers from being relegated to second class status when they try to vindicate their rights under the ADEA. Unless Congress passes this bill, too many older workers who have been victims of arbitrary age discrimination will be denied their day in court.”

The legislation addresses a June court decision that changed proof standards in place for decades, and has left many victims of age bias without a remedy. For instance, workers with valid claims of bias on grounds of age and race, or age and sex, have had to give up their claims of age bias in order to pursue other claims.

The Gross decision came in the midst of difficult economic conditions for older workers facing special obstacles. The unemployment rate for persons aged 55 and over is now well above what is has been for most of the past six decades. According to the most recent statistics, the average duration of unemployment for older workers was more than 12 weeks longer than it was when the recession started in 2007.

At the same time, the U.S. Equal Employment Opportunity Commission has reported a significant uptick in the number of age discrimination complaints. For the 2008 fiscal year, 29 percent more age discrimination charges were filed than in the previous fiscal year.

An AARP survey announced last year found that 60 percent of those surveyed aged 45 to 74 said that they had personally faced or observed age discrimination in the workplace.

“We urge Congress to quickly approve this bill as an important first step in a concerted effort to restore protections under our age discrimination laws, and to correct a misguided court decision that has jeopardized the rights of all older workers to be judged fairly on their abilities, not their age,” LeaMond said.

For more information, please visit www.aarp.org.

Added: October 7, 2009
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AARP Supports $250 Emergency Relief for Older Americans

Urges Congress to Pass Legislation Immediately to Address

Lack of Social Security COLA

Washington, DC –With an expected announcement of no Social Security cost of living adjustment (COLA) in 2010, AARP CEO Barry Rand called on House and Senate leaders to provide $250 in emergency relief to millions of older Americans who are struggling in this economic climate. AARP will work with members of Congress from both sides of the aisle to urge quick passage of legislation that will help combat rising health care and prescription drug costs that consume an increasing amount of seniors’ income each year.

Excerpts from Rand’s letter to House Speaker Nancy Pelosi (CA), House Minority Leader John Boehner (OH), Senate Majority Leader Harry Reid (NV), and Senate Minority Leader Mitch McConnell (KY) follow:

“On behalf of our 40 million members nationwide, AARP would like to express our strong support for providing America's seniors with $250 in emergency relief as the appropriate legislative response to the projected lack of a Social Security cost-of-living adjustment (COLA) in 2010.”

“Seniors spend a disproportionate share of their income (about 30 percent on average) on health care costs, which continue to increase well above the rate of overall inflation. The combination of higher health care costs, including prescription drug prices, and a stagnant Social Security benefit is particularly troubling and will result in lower net Social Security payments to millions of America’s seniors in January 2010.”

“Many senior citizens have lost a significant portion of their retirement savings due to the recent downturn in the U.S. economy. Unlike younger Americans, however, retirees have less time to make up substantial stock market and 401(k) account losses. The decline in housing prices in many parts of the country may also cause severe difficulties for those seniors who need to tap the equity in their homes in order to fund their retirement.”

“We urge you to pass legislation as soon as possible to provide relief to millions of Americans who will not receive a COLA next year.”

Added: October 1, 2009
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AARP Applauds Nebraska House Members for Medicare Vote

All three members voted ‘yes’ to hold Medicare premiums steady

AARP State President Sunny Andrews issued this statement applauding Nebraska’s three members in the House of Representatives for voting in support of the “Medicare Premium Fairness Act” (H.R. 3631). The measure passed on Sept. 24 by a vote of 406 to 18.

“AARP applauds Representatives Jeff Fortenberry, Lee Terry and Adrian Smith for supporting this important legislation. By holding Medicare premiums steady for all beneficiaries for the next year—premiums that have doubled since 2000—this bill will help ensure that health care is more affordable for tens of thousands of Nebraskans in Medicare—without burdening taxpayers or future generations with new spending.

“As health care costs continue to soar despite lower inflation throughout the economy, older Nebraskans are hit particularly hard. Retirees have seen their savings wiped away by market losses while their health care bills continue to climb. People in Medicare today spend nearly a third of their income on health care. H.R. 3631 provides some relief from rising health care costs and the lack of a cost of living update in Social Security.”

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 35.5 million readers; AARP Bulletin, the go-to news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

Added: September 30, 2009
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Where AARP Stands on Health Care

There's been a lot of confusion about what's involved in health care reform, and even more confusion about who is supporting what. At AARP, our core goal remains the same. We are fighting for our members today, just as we've fought for them for the last 50 years. Today, that means we're fighting to protect the Medicare benefits you’ve earned. To guarantee that you’ll never be denied coverage because of your health or age. To prevent anyone from coming between you and your doctor. And to make sure patients don’t take a backseat to insurance companies.

More specifically, AARP is fighting to:

Protect Medicare Benefits.Medicare is a sacred promise that was made to seniors – because no one should be left to struggle with medical bills after a lifetime of hard work. We must protect the Medicare benefits seniors have earned and strengthen the program for future generations. We’re also working to fill in gaps in today’s benefit package, such as closing the Part D prescription drug coverage gap (the so-called “doughnut hole.”) and eliminate out-of-pocket costs for important preventive care like cancer screenings and diabetes tests.

Eliminate Waste: We must reduce waste in Medicare so we can ensure today’s seniors continue to get the benefits they’ve been promised. Currently, Medicare hands out billions in subsidies to private insurance companies. These are tax dollars that should be going to seniors’ care not insurance company subsidies. By eliminating this waste, we can protect senior benefits and fill in some of the gaps in Medicare.

Preserve Your Choice of Doctor: AARP is fighting to ensure doctors get paid fairly so seniors will have the freedom to choose the doctors they need. Without health reform, Medicare doctors will be forced to take a 21 percent pay cut.

Protect Your Right to Make Medical Decisions: AARP is fighting to ensure that all health decisions are made by you and your doctor, not your insurance company or the government. No matter what your age, your care should be your choice.

Prevent Discrimination. Health reform must end insurance abuses, such as denials of coverage due to a person’s health history, or using age as an excuse to charge sky-high premiums. Such discrimination has become a serious problem for Americans age 50-plus who need insurance, and AARP is fighting to make sure needed protections are in a final health reform plan.

Protect Consumers: AARP is fighting to stop the high prices charged by drug companies by: enabling drug price negotiation; allowing safe, legal importation of lower-priced prescription drugs from abroad; and permitting the sale of generic versions of biologic drugs – costly medications for diseases such as cancer and multiple sclerosis.

AARP will continue to scrutinize health reform proposals, to determine whether they make sense for our members and their families. We are watching this process closely and will continue to work to make sure all Americans have the health coverage they need.

Stay informed. Read the latest news on how AARP is fighting for you. http://www.aarp.org/getthefacts

Added: September 22, 2009
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No COLA Increase Hurts Social Security Recipients

Anticipated No Increase To Hit Nation’s Most Vulnerable The Hardest

Washington , DC – On the heels of AARP Public Policy Institute’s Solutions Forum addressing the lack of a Social Security COLA for 2010, AARP released the following statistics today which highlight the impact of the economic recession on Social Security recipients. Data shows that medical prices have risen during 2009, and Medicare beneficiaries with higher than average health care costs are hardest hit by not having a COLA next year.

Higher Medicare deductibles and premiums for Part D prescription drug coverage will be announced soon, adding to the health care cost burden. Moreover, because Medicare Part B and Part D prescription drug premiums are often deducted from Social Security checks, millions of Social Security recipients could see their benefit checks reduced in 2010, while they are still suffering from reduced retirement savings and a stagnant housing and employment market.

“Seniors face rising costs, but today have fewer resources to pay for them,” John Rother, AARP’s Executive Vice President for Public Policy and Strategy, said. “We urge Congress to address this issue quickly, so that seniors will not face reductions in their Social Security checks, or at least be compensated for increasing medical costs so vital to their well being.”

As advocates for older Americans examine the potential impact of a first-time no COLA for Social Security recipients, AARP has raised specific concerns regarding the rising costs of health care and significant losses in retirement savings.

AARP has compiled the following data to further the discussion taking place among advocates and lawmakers:

Stimulus

As part of the 2009 economic stimulus package, workers received a tax credit of up to $400 ($800 for couples), for 2009 and 2010. Social Security beneficiaries (and certain other retirees and disabled persons) received a one-time payment of $250 for 2009 only.

In addition, older households are more likely than younger households to spend any additional income that they receive, and this spurs economic recovery. (Source: Did the 2008 Tax Rebates Stimulate Spending? Matthew D. Shapiro and Joel Slemrod, University of Michigan and NBER, December 27, 2008.)

Retirement Savings

While the economy is recovering, household net worth is still about 17 percent lower than it was at the end of 2007 (and nearly 20 percent lower in inflation-adjusted terms). (Source, AARP Public Policy Institute calculations from Federal Reserve Board, Flow of Funds Account, Balance Sheet of Households and Nonprofit Organizations, September 17, 2009.)

Interest rates paid on savings account deposits have now also dropped to very low levels, leaving even conservative savers in a pinch. The average annual interest rate on a 6-month CD is less than half a percent today (0.44 percent in August 2009), down from 4.85 percent at the end of 2007. (Source: Federal Reserve Statistical Release H.15, September 21, 2009.)

Employment

Many older workers now plan to work longer in order to rebuild their retirement savings in the wake of the recession. But some have already lost employment, and many will be unable to continue working. When older workers lose their jobs, it takes them longer to find a new one, and some of them instead opt to drop out of the labor force altogether, turning to Social Security and retirement savings.

Social Security claims are on the rise as the souring employment market forces older Americans out of the workforce and diminishes their personal savings. The number of applications for retirement benefits was nearly 9 percent greater than expected this fiscal year to date. (Source: Stephen C. Goss, Chief Actuary, Social Security Administration, May 28, 2009. Data are for October 2008 through May 2009.)

In August, the average duration of unemployment was over 30 weeks for jobseekers aged 55 and older, compared to about 20 weeks in December 2007 and 24 weeks for jobseekers under age 55. (Source: Sara Rix, AARP Public Policy Institute, analysis of data from the U.S. Department of Labor, Bureau of Labor Statistics. See in particular The Employment Situation: August 2009; tables in BLS’s Employment and Earnings, January 2008 and September 2009; and BLS’s Labor Force Statistics from the Current Population Survey.)

As Federal Reserve Chairman Ben Bernanke has explained, while the economy is expected to grow in the coming year, “the economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels.” Thus, increasing numbers of older Americans will rely on Social Security because they can’t find a job for some time to come. (Source: Chairman Ben S. Bernanke, remarks delivered at the Federal Reserve Bank of Kansas City's Annual Economic Symposium, August 21, 2009 and at the Brookings Institution, on September 15, 2009.)

Medical Costs

While overall inflation is low (or negative), medical costs continue to rise; and, older Americans spend more than others on health care.

Between August 2008 and August 2009 the cost of all goods and services other than medical care fell by 1.8 percent. In contrast, the cost of medical care rose by 3.3 percent. (Source: Bureau of Labor Statistics, Consumer Price Index Summary, September 16, 2009, Table 1.)

Rising medical costs can be a disaster for retirees or anyone with unusually large expenses. On average, Medicare beneficiaries spend about 30 percent of their incomes on out-of-pocket medical expenses. (Source: AARP Public Policy Institute.)

To watch the webcast of the September 21st AARP Public Policy Institute’s Solutions Forum on the Social Security COLA, go to www.nextgenweb.org/aarp.

Added: September 22, 2009
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AARP Comments on Senate Finance Health Reform Bill

AARP Executive Vice President John Rother released this statement following today’s introduction of health care reform legislation in the Senate Finance Committee:

“Today’s legislation moves the process forward and we hope the Chairman and his colleagues on both sides of the aisle can continue to have a rational, informed debate about its provisions as the committee’s markup process begins.

“AARP is pleased that the bill focuses on keeping people healthy by eliminating out-of-pocket spending for important screenings and preventive services in Medicare, and by covering annual wellness visits for Medicare beneficiaries and their doctors to focus on prevention. Under the legislation, doctors would be rewarded for providing quality care instead of for the number of tests ordered—a critical step in ensuring patients receive the highest quality care.

“The bill also includes incentives to improve quality of care by providing bonuses to Medicare Advantage plans while reducing subsidies to MA plans, saving taxpayers billions in waste. It introduces a pilot program on follow-up care, an important component in reducing costly and preventable hospital readmissions. Finally, the bill eliminates yearly and lifetime limits on what insurance companies will pay and substantially fills the dreaded Medicare doughnut hole—a costly gap in prescription drug coverage.

“However, we continue to have concerns about provisions that would allow for large differences in premiums based on age that could leave millions of older Americans still unable to afford the coverage they need. We also are troubled by the lack of any provisions to improve benefits for people with limited incomes so they can afford Medicare premiums and cost-sharing, and by the inclusion of an added premium tax that would raise prescription drug premiums on many middle-income working people in Medicare Part D.

“We look forward to working with Chairman Baucus, Ranking Member Grassley and their colleagues in the coming weeks to pass a health care reform package that protects benefits for people in Medicare and works for every American.”

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 35.5 million readers; AARP Bulletin, the go-to news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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Added: September 16, 2009
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AARP Tax-Aide Seeks Lincoln Volunteers

AARP Tax-Aide, the nation’s largest free volunteer-run tax counseling and preparation service, is seeking volunteers to assist in tax preparation in the Lincoln area. Tax-Aide is in its 43rd year of serving low- and middle-income persons with their tax returns, especially those 60 and over. Last year the Tax-Aide program assisted more than two million Americans in filing their taxes.

Volunteers of all ages and backgrounds are welcome. You do not need to be an AARP member or retiree to volunteer. Computer-literate volunteers receive four days of free tax training and become IRS certified Counselors by passing the IRS exam. IRS and the AARP Foundation provide laptops and easy-to-use software for electronic filing. Client Facilitator volunteers don’t need to use computers or do taxes.

“It’s a great way to learn new skills, be involved in your community and help people in need one-on-one at tax sites,” said AARP Tax-Aide District Coordinator Allan Smith of Lincoln.

Leadership positions coordinate program delivery by volunteers at local sites. Although tax training and certification are encouraged, it is not required for all positions. Volunteers are asked to give a minimum commitment of 40 hours over the ten-week season. Expense reimbursement is provided for some program-related, out-of-pocket expenses. Training is planned for early December.

For more information about becoming a local AARP Tax-Aide volunteer, call or e-mail Allan Smith at: smith.allan.t@gmail.com by Oct 1.

AARP Tax-Aide is administered through the AARP Foundation in cooperation with the Internal Revenue Service. The AARP Foundation is an affiliated, 501 (c)(3) nonpartisan charitable organization. The AARP Foundation administers publicly and privately funded programs, such as AARP Tax-Aide and the AARP Senior Community Service Employment Program.

Added: September 16, 2009
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Medicare at the Movies Playing in Omaha Oct. 21

AARP Nebraska and Volunteers Assisting Seniors are cosponsoring the third annual “Medicare at the Movies” for people on Medicare and caregivers. The event will be held on Wednesday, Oct. 21 from 9.a.m. to 12 noon at Great Escapes Theatre, 7440 Crown Point Ave. in Omaha.

The free event will feature presentations on upcoming changes to Medicare in 2010, including the Part D prescription drug plans, and pharmacists discussing wise use of medicines by consumers. Flu shots will be offered, as well as refreshments and several informational booths on health and wellness. No registration is needed. For more information, call toll-free 1-866-389-5651.

Added: September 10, 2009
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AARP Reacts to Presidential Address

AARP CEO Barry Rand released this statement following President Barack Obama’s address to Congress:

“Over the last several weeks, the health care debate shifted from a conversation to a shouting match, and legitimate concerns about how we fix our health care system were drowned out by myths and mischaracterizations. It’s time to get back to the goal of fixing our system so everyone has quality, dependable health care they can afford. We are optimistic that tonight’s address will help move us toward an agreement on these important issues.

“At AARP, we’re fighting for reforms that protect and expand benefits for people in Medicare, prevent discrimination based on age or health, and ensure no one—not an insurance company or a government bureaucrat—can come between you and your doctor. We need to close the dreaded gap in Medicare drug coverage that forces many to stop taking the medicines that keep them healthy. And we need to ensure that older Americans can buy and keep affordable health coverage.

“AARP will fight on behalf of our 40 million members to ensure health care reform works for them by making coverage available and affordable and by improving the quality of care they receive.

“We applaud the president’s effort to keep health care reform moving forward. Tonight, he laid out thoughtful goals for health care reform. We share many of those goals and we will continue to work for our members and their families to ensure health care reform meets their needs.”

Added: September 10, 2009
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Health reform no threat to Medicare

Since Medicare is such an important program for our members who are over the age of 65 or those who are eligible for its coverage due to a disability, we are devoting this edition to the proposed changes in Medicare. Please note that the descriptions of proposed changes are those found in the House bill. The Senate committee that holds jurisdiction over Medicare, the Finance Committee, has not released its proposal

Medicare beneficiaries have been the target of a campaign that characterizes the proposed Medicare changes in H.R. 3200 as Medicare cuts. Those making the claim say that the bill would take a large amount of money from Medicare. They indicate that this is unwise since Medicare faces bankruptcy in 2017.

H.R. 3200 does not eliminate any Medicare services. It does not limit access to any services. It does place limits on the reimbursement rates for some services and on overpayments made to Medicare Advantage plans. And it would make some improvements in Medicare.

The Basics of Medicare Financing

To evaluate the claims being made about the impact that H.R. 3200 will have on Medicare, it is important to review the fundamentals of Medicare financing.

The Medicare Hospital Insurance Trust Fund (HITF) finances Medicare Part A hospital costs. The HITF is financed from 1) payroll deductions, 2) income taxes paid by Social Security beneficiaries with incomes above $34,000 for a single person and $44,000 for a couple, and 3) interest earned on trust fund assets.

The 2009 Annual Report of the Social Security and Medicare Boards of Trustees projected that, given the current patterns of expenditures and collections, the Hospital Insurance Trust Fund will be depleted by 2017. Congressional action will be necessary to ensure uninterrupted coverage of hospital services beyond 2017. Here is a link to the trustees' report.   http://www.ssa.gov/OACT/TRSUM/index.html

According to the report, Part B, which pays doctors' bills and other outpatient expenses, and Part D, which pays for prescription drug coverage, are "both projected to remain adequately financed into the indefinite future." Part B and Part D costs are not financed through the Hospital Insurance Trust Fund. Part B is financed through premiums paid by beneficiaries (25% of cost) and general fund (75%). Part D is financed through premiums paid by beneficiaries (25.5%) and general fund (74.5%). The report does indicate that the trustees expect increasing Part B and Part D costs will place significant stress on beneficiaries who pay Part B and D premiums and taxpayers who pay the general fund portion of Part B and Part D.

How Would H.R. 3200 Affect Medicare?

The Medicare proposals in H.R. 3200 would not affect funds flowing into the Hospital Insurance Trust Fund. No money will be diverted from the trust fund. H.R. 3200 would place limits on Medicare reimbursement rates for several covered services. The reimbursement constraints are consistent with the recommendations of the March 17, 2009 report of the Medicare Payment Advisory Commission (MedPAC). Here is a link to that report. http://www.medpac.gov/documents/Mar09_March%20report%20testimony_WM%20FINAL.pdf

Here are descriptions of some of the proposals that have been included in the House bill along with some background from the MedPAC report.

SKILLED NURSING FACILITIES -- Adjustments in payments to skilled nursing facilities would result in spending reduction of $32 billion over ten years. The MedPAC report section on skilled nursing facilities states, "Our indicators of the adequacy of Skilled Nursing Facility (SNF) payments are generally positive. These indicators include a stable supply of providers, a slight increase in service volume, and growth in Medicare margins." The report states that the average Medicare margin for freestanding SNFs was 14.5% in 2007, making this the seventh consecutive year that the average Medicare margin was above 10%.

HOME HEALTH SERVICES -- Payments to home health agencies would be reduced under the terms of H.R. 3200 by about $57 billion over ten years. Here is what the MedPAC report says about home health agencies. "Access, volume and supply of agencies remained stable or increased, suggesting that Medicare beneficiaries have adequate access to care...Home health agencies continue to be paid significantly more than cost, with average margins of 16.6% in 2007."

MEDICARE ADVANTAGE -- The largest proposed reduction in H.R. 3200 comes from a gradual reduction in payments to insurance companies offering Medicare Advantage plans so that they align with the cost of providing coverage through the regular Medicare program. The proposed change would save $156 billion over ten years. The MedPAC report indicates that, as currently constituted, Medicare Advantage (MA) is a disproportionate drain on Medicare resources. "MA payments are projected to be 114% of comparable (Medicare) spending for 2009." The report notes that MA plans provide enhanced benefits for enrollees, but that these enhanced benefits are financed out of the Medicare program and other beneficiaries at a high cost. The report notes that each dollar's worth of enhanced benefits provided by MA plans that are classified as private fee-for-service plans costs Medicare three dollars. The private fee-for-service MA plans are also the most expensive at a cost of 118% of comparable Medicare spending.

PRODUCTIVITY UPDATES -- H.R. 3200 would factor in productivity adjustments into the reimbursement rate formulas for some services that do not currently use them. An existing productivity measure would be incorporated into the formula used to set rates for hospitals, skilled nursing facilities, long-term care hospitals, inpatient rehabilitation facilities, psychiatric hospitals, and hospice rates in Part A and outpatient services, ambulance, ambulatory surgical centers, laboratory services, and durable medical equipment in Part B. This change is expected to reduce Medicare spending by $102 billion for Part A services and $40 billion for Part B services over a ten-year period. A productivity factor is currently included in the formula used to develop reimbursement rates for physicians.

The Effect of H.R. 3200 on Medicare

H.R. 3200 does not eliminate any Medicare services. It does not limit access to any services. It would not disrupt the funds flowing into the Hospital Insurance Trust Fund, which is the component of Medicare that is projected to be insolvent by 2017.   It would limit reimbursement for some services and curb the overpayments that are being made to Medicare Advantage plans.

With regards to the solvency of the Hospital Insurance Trust Fund, the net effect of the bill would be to extend the period of time that the trust fund will be solvent by an additional five years to 2022.

H.R. 3200 includes several improvements for beneficiaries. Those improvements include:

elimination, over a period of years, of the Part D coverage gap, commonly known as the "donut hole";
improved access to physicians as a result of better physician reimbursement;
enhanced access to the Part D low-income subsidy;
coverage of preventive services and waiver of cost sharing for those services;
expanded access to vaccines.

The reductions in Medicare spending are directed towards reimbursement rates for providers that, as a group, have been found to have healthy margins. In addition to these reimbursement reductions, there are several improvements in Medicare that will assure continued access to physician care and reduce out-of-pocket costs for many beneficiaries.

Added: September 9, 2009
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