Fixing one problem can sometimes create another. Just ask
federal lawmakers about their attempts to add a prescription drug
benefit to Medicare.
The problem? Some Medicare patients struggled to afford
prescription drugs. The solution: Lawmakers passed a law last year
that offered drug coverage to all Medicare patients-even though
most already had drug coverage from their former employers.
Enter a new problem: Many companies now are tempted to cut costs
and increase profits by dropping senior drug benefits and dumping
their retirees into the Medicare program.
So, Congress tried to solve that problem by offering money to
companies that keep their drug benefits for retirees. The exact
amount is still being worked out, but the July 28 Wall Street
Journal reported it ranges from $611 to $940 per covered retiree. A
company with just 100 retirees could get up to $94,000 of your tax
money to keep the drug coverage it already offers.
One could call this a "bribe." But in Washington, it's a
"subsidy"- and that's a problem in and of itself. For real
solutions to Medicare problems, read this from Heritage Foundation
health care expert Robert Moffit: http://www.heritage.org/Research/HealthCare/bg1750.cfm.
For more information or to receive an e-mail version of "Bitter
Pills," contact [email protected]
or call Heritage Media Services at (202) 675-1761.
"Bitter Pills" is an occasional, but regular, feature from The
Heritage Foundation on how the 2003 Medicare drug law is full of
sickening "surprises" that have serious consequences for seniors
and taxpayers. Of course, The Heritage Foundation isn't surprised
at all. We diagnosed the problems long ago in ourMedicare Maladies series.
Both Medicare Maladies and Bitter Pills are available on heritage.org (if you can stomach
them).
Report Health Care Reform
Bitter Pills #13: How The Government Fixes A Problem (With YourMoney)
August 2, 2004 1 min read
The Heritage Foundation
Authors
The Heritage Foundation
More on This Issue
FACTSHEET 4 min read
BACKGROUNDER 35 min read
COMMENTARY 4 min read