CONGRESS TO DOCTOR MEDICARE

Funds to Run Out by Turn of the Century

by John Long

Medicare, the federal program that finances medical care for the elderly, is facing financial insolvency by the turn of the century. The U.S. Congress and President Clinton are once again preparing to face this insolvency, and it seems likely that so-called corrective steps will not be immediate, but will be taken over a four-year stretch.

Following the year 2000, age eligibility may be pushed from 65 to 67. Private insurers may take over government burdens and government may pay individual insurance premiums. Economists predict there will likely be reductions in Medicare benefits. By 2010, say experts, "a demographic tidal wave" will hit America as more graying citizens reach the age of eligibility.

Josh Wiener of the Urban Institute says "The American people do not yet have very firm ideas about what kind of change ought to occur in the health system...and that's true for Medicare in particular."

President Clinton has called for a bipartisan commission to address Medicare's long-term challenges. He is supported by The American Hospital Association and by the American Association of Retired Persons.

In 1997, it is thought, most beneficiaries won't feel financial pain. There could be some difficulties experienced finding appropriate doctors, however. All beneficiaries are likely to be offered more managed-care options, or HMO's, which limit a patient's choice of doctors and attempt to lower overall medical costs.