Himes Discusses the Future of Medicare with Stamford Seniors

To control Medicare is to control the national debt.

That’s that thrust of what Rep. Jim Himes (D-4) told the Stamford Senior Center Thursday afternoon. As medical costs continue rising Congress must determine what to do regarding Medicare, which represents about 14 percent of the federal budget.

So far Wisconsin’s Rep. Paul Ryan, chair of the House Budget Committee is the only Republican to offer a serious budget plan. But there are two things wrong with his plan, Himes said.

One, the Congressman said it places the burden of health care costs squarely on the shoulders of senior citizens. Two, it does nothing to reduce the price of health care.

Ryan proposes restructuring Medicare according to a voucher system. Under the plan, future Medicare enrollees, or those born after 1957, would no longer receive guaranteed benefits. Instead individuals would receive a set amount of government money. They would then buy their own private insurance.

The government payments would be linked with inflation rates as measured by Consumer Price Index. Critics argue that health care costs outpace CPI and so would impose an unfair burden on older Americans.

According to the non-partisan Congressional Budget, typical 65-year-olds in the year 2030 would pay 68 percent of health care costs out of pocket. That’s a 25 percent more than they pay now.

Many of the attendees seated in the ’s fourth floor cafeteria worried about the cost of prescription drugs, or whether their children and grandchildren will be able to afford health care in the future.

Some in the audience worried that if the Ryan plan passes, their premiums will increase. They also worry that insurance companies could deny coverage, or price them out of coverage.

However, starting in 2014, insurance companies will no longer be able to deny coverage based on pre-existing conditions, Himes said.

“But they’ll need to charge for that [pre-existing conditions] if it becomes more expensive. I don’t know how it works, but corporations are pretty good at turning away people they don’t want,” Himes said.

Stamford resident Gloria Blick, a board member of the senior center, said she’s concerned because Medicare reimbursements for wellness programs have decreased.

“I’ve been watching that code,” Blick said of her work with claim forms. “And they give billions of reasons why they’re denying the claim. It’s a problem because Medicare sets the mood of private insurers.”

Himes said that worries him since “wellness is one of the few things that can actually save money.”

And while Ryan’s plan is forcing serious discussion, it’s seriously flawed, Himes said.

“I’m going to speak a little more politically here,” Himes said.  “The reason Ryan said 55 years and younger is because seniors vote. Frankly, it was a pretty cynical maneuver.”

Himes said Ryan doesn’t understand that while senior citizens do worry about how changes in Medicare and Social Security would affect them personally, they worry about their children and grandchildren a lot more.

When asked why he doesn’t specifically target those 55 and younger when discussing both entitlement programs, Himes said “these meetings are open to anyone. But people under 55 are busy raising kids.”

Still Himes said he hopes to reach a broader audience in the coming days when he series of Tele-Town Hall meetings.  

Himes agreed that both health care and the national debt are certain to take center stage in the 2012 elections. Already potential GOP presidential candidate nominees are weighing in on the Ryan proposal.

Newt Gingrich called Ryan’s plan radical. Then Gingrich rescinded his remarks and apologized to the budget committee chair.

“That demonstrated a certain amount of brains on his part,” Himes said referring to Gingrich’s first statement.

As to Gingrich’s quick retraction, Himes said, "It showed a crass hypocrisy.”