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First, I will propose raising the Medicare eligibility age every year starting in 2014 by two months until it reaches 67 in 2025. So if you turn 65 in 2014, you will have to wait an additional 60 days before you become eligible for Medicare. That’s a small sacrifice to ask for the benefits you will receive from a healthy Medicare program for the rest of your life.
Second, I will propose reforming the complex Medicare benefit structure, which is wasteful, misunderstood by nearly all Medicare enrollees and prone to over-utilization and fraud. We can fix these long-standing problems by implementing a single, combined Part A and Part B deductible, requiring a co-pay on all Medicare services and adding a maximum out-of-pocket benefit that will give seniors peace of mind by promising them they will not have to pay more than a set amount of their health-care costs annually.
Third, it is time to reform the premium structure. When Medicare was designed, the premiums paid by beneficiaries supported 50 percent of the program. Today they pay only 25 percent of total costs. This results in an enormous drain on our federal budget and is one of the leading drivers of our annual deficits. I will propose that we raise the premiums for all new enrollees in Part B (doctor’s services) and Part D (prescriptions) starting in 2014 to 35 percent of program costs.
Asking Americans to pay more won’t be popular, but doing nothing and allowing Medicare to go bust won’t be popular either.
Fourth, we need to reform the way Medigap policies work. Many studies have found that Medicare enrollees who have supplemental coverage use as much as 25 percent more services than those with only traditional Medicare coverage. The result of this increase in utilization is a higher overall bill for taxpayers, not the holders of these policies.
Fifth, we cannot keep Medicare working for seniors by only reducing benefits or making adjustments to the premium structure. We also need to raise more revenue. I will propose that higher-income Americans pay an additional 1 percent of every dollar they earn over $250,000 to help save the program.
http://www.washingtonpost.com/opinions/how-medicare-can-be-saved/2011/06/06/AGexjqNH_story.html