NEAR ELDERLY: Democrats Unveil Medicare Buy-In Bill
President Clinton attended a Capitol Hill news conference this morning where congressional Democrats formally announced their bill to allow the near elderly to buy into Medicare. Additionally, a state-by-state study underscoring the need for this policy was expected to be released. In addition to the president, Sens. Tom Daschle (D-SD) and Patrick Moynihan (D-NY) appeared at the news conference, along with Reps. Sherrod Brown (D-OH) and Pete Stark (D-CA) (White House release, 3/17). According to CongressDaily/A.M., their Democratic proposal would make seniors aged 62-65 eligible for Medicare benefits at a monthly premium of $300; the proposal would take effect in July 1999. Eligible near-elderly persons "also would have to pay a deferred monthly premium from ages 65 to 85 equal to $16 times the number of years from ages 62 to 65 that they participated in the buy-in." The bill also includes a provision allowing persons 55- 62 to buy into Medicare, so long as "they were eligible for unemployment insurance, no longer had coverage, were not eligible for COBRA coverage, and had at least a year of employment-based health insurance before being laid off." For these persons, the "monthly premium would be $400, adjusted for inflation," with no deferment. Democrats claim that the program would essentially pay for itself through the premiums and through stepped-up efforts to combat Medicare fraud (Koffler, 3/17).
Tell Us Why, Bill
USA Today reports that Clinton "comes armed with a White House study showing that 4.6 million, or 22%, of the 21 million people in" the near-elderly age group "either lack coverage or have expensive, individually purchased policies." The study further shows that 38 states "fail to guarantee 55- to 64-year-olds access to individual health insurance if they already have a medical problem." The study also says 40 states "don't limit the amount insurers can charge people who have such pre-existing conditions" (Findlay, 3/17). According to the study, the problem "is especially acute in states such as North Dakota, Texas and Nebraska." Thirty-seven percent of near-elderly North Dakotans "lack coverage or pay for expensive individual coverage," while 31% of near-elderly Texans and 33% of near-elderly Nebraskans fall into this category. The study was prepared by the White House's Domestic Policy Council and National Economic Council.
GOP Opposition
Congressional Republicans have promised to oppose the near-elderly proposal. They disagree with Democrats' estimates of the plan's cost, and are "concerned that it could push the Medicare Trust Fund toward insolvency" (Ross, AP/Los Angeles Times, 3/17).