As Congress continues to debate the best fixes for our healthcare system, our representatives in Washington have an opportunity to correct a “fix” to our Medicare Part D program and reverse a damaging gimmick from the Affordable Care Act, saving seniors, and taxpayers, from increased healthcare costs.
The Affordable Care Act slowed the “catastrophic coverage limit,” the price point at which seniors in Part D have already paid significant amounts for their medications and the federal government steps in to lessen the burden. On its face, this appears to be a positive effect, as program participants more quickly reached this coverage point and therefore were saddled with lower costs.
The problem, as with so much of the ACA, is that it was both unsustainable and unaffordable. In 2020, Obamacare’s artificial fix will suddenly reverse and Medicare seniors will immediately face an almost $1,500 increase to the catastrophic coverage point. For most program participants, this would be a devastating increase.
While this consequence would have wide-reaching effects, similarly important is correcting a “fix” to Part D, which passed as a part of the Bipartisan Budget Act passed in February. While the change was rightfully made to help ensure that our nation’s seniors are not saddled with a sudden and steep cost increase, the fix fundamentally undermines the competitive balance that has made Part D so successful by removing accountability from insurers in controlling the cost of care. The change eliminates their responsibility for keeping the cost of care low, essentially removing a downward pressure to control the cost of the Part D program.
In looking ahead, our Congressional leadership should search for a comprehensive fix that both protects seniors AND Part D’s competitive structure which has routinely saved the federal government taxpayer dollars.
Though the work is hard, Congressional leadership have already proven themselves more than capable and willing to tackle these difficult issues. Now, all we need is for them to commit to this effort once more.
