Secretary Sebelius and the Medicare Trustees Report
May 13, 200912:20 pm
Health and Human Services Secretary Kathleen Sebelius got it exactly right when she responded to the new Medicare Trustees report showing that the hospital trust fund will run out of money by 2017, two years earlier than last years forecast.
Secretary Sebelius said that we need to find a way to get more Americans quality healthcare when they are younger so that they will be healthier and less in need of expensive care after they turn 65. This approach makes far more sense than, for example, trying to balance the books by putting an even tighter financial squeeze on physicians, hospitals and other healthcare providers. As has been documented, Medicare is already paying less than the actual cost of healthcare services. Consequently, an increasing number of physicians are declining to accept new Medicare patients and cost-shifting is increasing the financial burden on private healthcare payers.
We can’t fix Medicare by taking steps that will reduce healthcare access, undermine quality and make healthcare less affordable for employers and consumers.
That’s where health reform comes into play. Expanding access to health coverage is only part of the mission. Changing the Medicare payment system has to be one of Congresss chief objectives. We need to align payment incentives with care coordination and evidence-based medicine, reducing the costs associated with overtreatments and undertreatments. Another centerpiece of health reform has to be an emphasis on wellness and disease prevention for all ages, with efforts to increase health literacy and healthier lifestyle choices.
This approach is spelled out in Closing the Gap, the consensus health reform proposal developed by leaders from every healthcare sector.
Medicare’s deteriorating financial condition is of great concern. I am very pleased to see that Secretary Sebelius is bringing the right perspective to the problem.
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