Medicare Reforms?

This letter was to me from the State Representative in my area. I'm so glad I'm healthy.

Thank you for contacting me regarding funding for the Medicare Advantage program. I appreciate having the benefit of your comments on this issue.

Although passage of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (P.L. 108“173) presents a framework for reform, the Medicare program is still in need of improvement. Medicare's largest expense”the Hospital Insurance Trust Fund”provides funding to cover hospital care. According to the 2007 Annual Report of the Hospital Insurance and Supplementary Medical Insurance Trust Funds, the Hospital Insurance Trust began running deficits in 2004, and unless changes are made, the fund will be exhausted by 2019.

The Medicare program's long-term financial prognosis can be attributed to a number of factors, including an aging population, less healthy participants, and the escalating cost of healthcare. In addition, prior to the enactment of P.L. 108“173, the Medicare program had not undergone significant reform since 1965”the year it was championed by President Lyndon B. Johnson as part of the Great Society. As such, Medicare has been unable to keep pace with four decades of healthcare changes”operating as a less than optimal program.

To strengthen Medicare and ensure that it meets the health care challenges of current and future American seniors, we must continue our reform efforts and develop long-term solutions to the program's antiquated policies. We must encourage market-oriented policies that foster competition and lower costs; increase provider and consumer responsibility and accountability; and promote cost efficiency, fair access, and preventive health measures.

Medicare Advantage Plans have been instrumental in providing seniors with affordable health care. I believe that it is important for seniors to continue to have access and choice in their Medicare Advantage Plans. Although I am not a member of the Senate Finance Committee, which has jurisdiction over this issue, you may be certain that I will keep your views in mind as the full Senate considers proposals to reform the Medicare program during the 110th Congress.

I appreciate having the opportunity to represent the interests of Texans in the United States Senate. Thank you for taking the time to contact me.

Sincerely,

JOHN CORNYN
United States Senator





517 Hart Senate Office Building
Washington, DC 20510
Tel: (202) 224-2934
Fax: (202) 228-2856
http://www.cornyn.senate.gov

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