Health care issues: Medicare cuts

By The Associated Press (AP) – 10-06-2009

A look at key issues in the health care debate:

THE ISSUE: Will seniors' Medicare benefits be slashed to pay for health care overhaul?

THE POLITICS: Democrats are proposing to reduce the ballooning costs of Medicare to keep the program solvent. They want to root out waste to find the savings, and to reduce payments to some providers. Republicans have argued that the Democrats' plan would slash Medicare benefits. Seniors on Medicare have been some of the most vocal opponents of the Democrats' health care overhaul proposals. President Barack Obama says America's elderly citizens won't lose coverage. The AARP, which represents Americans 50 and over, backs Obama and says the reforms will lower drug costs for some seniors, protect access to doctors and strengthen Medicare.

WHAT IT MEANS: The House health care proposal would reduce projected increases in Medicare payments to some health care providers by more than $500 billion over 10 years. Some of that money would be put toward avoiding cuts in payments to doctors so seniors have better access to physicians. Democrats plan to reduce payments to private providers in programs such as Medicare Advantage, which is operated by private insurance companies and bought by seniors to fill gaps in coverage. Democrats propose to also reduce Medicare's costs by targeting fraud and waste, such as overpayments to some home health providers. Some of the savings from Medicare would be used to cover uninsured workers who pay Medicare taxes.

_ Suzanne Gamboa