For Immediate Release

Contact: John M. Martino
Phone Number:  (215) 895-1186
Date: 05/05/03

Medicare Debate Revolves Around Trade-Offs

-- A University of the Sciences in Philadelphia Health Tip -- 

Trade-offs are a necessary part of everyday life. Purchasing a major investment, such as a house or automobile, sometimes requires you to relinquish a certain luxury to reach your budget. Medicare reform is, unfortunately, the same. The American public will have to decide what specific services of Medicare they want to preserve, but their decision could diminish or eliminate a different benefit or luxury of the federal program.

“President Bush has proposed specific trade-offs, such as requiring people to leave the fairly generous existing system for HMOs if they want prescription drug coverage,” says Dr. Robert Field, director of the health policy program at University of the Sciences in Philadelphia. “The pessimistic reaction from elected officials indicates this is not a trade-off that Americans are eager to make. But if the present system remains as is and a prescription drug benefit is added, we will have to pay the cost with higher taxes, larger deficits or even both.”

Reforming the structure of Medicare will inevitably curtail some of the benefits the elderly have enjoyed in some way. Is there a right or wrong answer? According to Dr. Field, the hierarchy of the American public’s values will determine the answer.

“We need to focus on what we see as most important,” says Dr. Field. “Is it comprehensive coverage that includes prescription drugs, restrictions, care by HMOs or saving money on taxes?”

Medicare is important to society beyond funding health care for the elderly. It is also the chief source of funding for other significant activities, such as clinical training of future doctors, hospital expansion and evaluating new medical procedures. The impact of Medicare’s policy changes will be tremendous because it essentially affects every aspect of healthcare delivery in America.

“When we pick our trade-offs for the future of Medicare,” says Dr. Field, “we must recognize that we’re not just deciding how much care for the elderly we’re willing to pay. We’re also changing every aspect of the system, from the way physicians are trained to the way hospitals are built to the way pharmaceutical companies do business. The value of policy analysis is that it can help clarify the fundamental long-term effects before we make any decisions that could have consequences we don’t understand.”

Note: On May 14, USP will be hosting a major symposium for policy dialogue on the future of Medicare featuring the last three administrators of the Centers for Medicare and Medicaid Services (CMS, formerly HCFA). For more information, visit http://www.usip.edu/

To arrange an interview with Dr. Field, contact John M. Martino at (215) 895-1186 or e-mail: j.martin@usip.edu.

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