Privatization: Medicare's Midlife Crisis

Main Category: Medicare / Medicaid / SCHIP
Article Date: 12 Aug 2008 - 1:00 PDT

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43 years ago Medicare became law, bringing health and income security not only to older people but also to their families. Before Medicare, half of all older people had no health insurance and nearly 35% lived in poverty. Today poverty among older people has dropped by two-thirds and most Americans over 65 or with significant disabilities have Medicare health insurance.

Medicare has worked.

Massive subsidies to private insurers, however, threaten Medicare's future.

"The privatization of Medicare is saddling older and disabled people with rising premiums and growing out-of-pocket costs at a time when they are already feeling the pain of an economic downturn," said Judith Stein, founder and executive director of the Center for Medicare Advocacy. "We must reverse wasteful privatization in favor of real solutions to preserve Medicare - our one universal healthcare plan."

"Medicare beneficiaries and all taxpayers are paying more than they should in order to provide robust subsidies to private Medicare plans," continued Ms. Stein. "It's time to drop the ideological commitment to privatization at the expense of everyone but the insurance industry. If we don't insist on this soon Medicare will not survive its mid-life crisis."

The Center for Medicare Advocacy, Inc. is a national non-profit, non-partisan organization that provides education, advocacy, and legal assistance to help elders and people with disabilities obtain Medicare and necessary health care. The Center was established in 1986. We focus on the needs of Medicare beneficiaries, people with chronic conditions, and those in need of long-term care. The organization is involved in writing, education, and advocacy activities of importance to Medicare beneficiaries nationwide. The Center's central office is in Connecticut, with offices in Washington, DC and throughout the country.

Center for Medicare Advocacy, Inc.