Medicare an "Antiquated System" -- Frist

May 12, 2003
Senate Majority Leader Bill Frist (R-Tenn.) says that Medicare is an "antiquated system" that cannot sustain itself in the current health care market, especially with the number of baby boomers about to enter the system. He made the comments in a meeting with the editorial board of the Nashville Tennessean, his hometown newspaper.

"The taxes coming in can't support [Medicare] today," Frist said, noting that the number of seniors will double over 30 years while the number of workers paying into the system per beneficiary will fall from 3.9 today to 2.4 by 2030.

Meanwhile, Senate Finance Committee Chair Charles Grassley (R-Iowa) has reached a compromise with fellow Senate Republicans on a 10-year, $435 billion tax cut bill that would provide $20 billion in funds for states, in large part for their Medicaid programs, according to the Des Moines Register.

Grassley said that a provision to provide funds for states "is necessary to win backing for any tax cut package from both parties." Sen. Susan Collins (R-Maine) said, "I have made very clear to the leadership that I want to continue to work with them to ensure that the final package does contain fiscal relief to the states."

"The legislative stars are aligned" to pass Medicare reform and that President Bush "will be supportive," Frist said but added, "My challenge is how you strengthen it, improve it or modernize it."

The comments drew fire from Frist's critics.

"Sen. Frist might want to take another look at those stars," said George J. Kourpias, President of the Alliance for Retired Americans.

"The Medicare Trustees -- most of whom were appointed by President George W. Bush -- announced in their annual report, released in March, that Medicare's Part A Hospital Trust Fund is solvent until 2026. The Trustees also found that Part B which covers doctors' services, outpatient care and other medical services remains 'adequately financed into the future,'" Kourpias said.

Frist said that about $400 billion over 10 years is designated for a prescription drug benefit for Medicare. To address the high cost of prescription drugs, Frist said that he would use "large purchasing" along with increased use of generic drugs and a tracking procedure to determine if television advertising keeps patients from using generic drugs.

Frist said that the tracking procedure also would monitor other prescription drug consumption patterns.

"If you look at all 33 million Medicare patients, 5% account for 50% of the spending. The problem is you can't capture those 5% in the data you have today," he said.

Frist said that he plans to introduce Medicare legislation in June and that he anticipates that the issue will be difficult, especially convincing other legislators that change will work.

"The Alliance's fear is that Sen. Frist's idea of 'reforming' Medicare is to turn the program over to health care providers who will be motivated by profit not concern for patients," Kourpias said.

"After all, these are the same providers that have dropped 2.4 million Medicare beneficiaries over the past five years because they weren't profitable enough."