AARP Health Reform Priorities Improving and Strengthening Medicare

“We never imagined when we were younger that our health care premiums would cost us over $700 per month, and that includes retiree [health] insurance, which we must keep due to the high costs of prescriptions. Medicare does not cover everything. Something is very wrong with the health care system in America. Many of us cannot retire because our medical expenses preclude that idea.” —Arlene F., NC

Medicare is a vital source of health care coverage for people age 65 and older, people with disabilities, and people with end-stage renal disease. For most of these 44 million people, Medicare is their only option for affordable, quality health care. And yet, skyrocketing health care costs combined with an economic crisis are making the gaps in Medicare even more apparent.

Many assume that people with Medicare have an easy time paying their medical bills. At AARP we know this is not the case. People on Medicare spend about 30 percent of their incomes on out-of-pocket health costs—including premiums for supplemental coverage. These costs are six times greater than for people with employer coverage.

Millions of people with Medicare now contend with shrinking retirement savings, rising premiums, and soaring costs for drugs and other health expenses. These problems have undermined health and economic security, and they need to be fixed. Medicare must continue to provide current and future generations with affordable, quality care. That’s why AARP is fighting for reforms that:

• Reduce Prescription Drug Costs: Taking steps to close the Part D coverage gap (doughnut hole) and lower drug costs.
• Keep Medicare Affordable: Ensuring premiums and out-of-pocket costs do not become excessive.
• Attack waste, fraud, and abuse: Supporting strategies that could save taxpayers and patients billions of dollars a year.
• Help the Most Vulnerable: Changing rules to help low-income people afford their prescriptions, premiums, deductibles and other health expenses.
• Improve Quality of Care: Enhancing coordination of patient care, reducing hospital readmissions, providing greater support for caregivers, and improving end-of-life care.
• Reduce Health Care Disparities: Taking steps to make sure all Americans receive high quality care, regardless of race or ethnicity.