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Tom Coburn and Joe Lieberman have linked arms to put forward a means-tested Medicare reform proposal. A video of their press conference is below.
Lieberman reportedly gave up his wish for higher taxes on wealthy individuals in exchange for the means-testing. Roll Call reports:
Under their plan, the age of eligibility for Medicare would gradually increase to 67 from 65, starting in 2014. The proposal assumes the continued implementation of President Barack Obama’s health care law. Under the Coburn-Lieberman plan, seniors would be eligible to participant in the health care exchanges created by that law. The proposal would gradually increase premiums paid by all seniors to generate the bulk of the savings. It would also require wealthier seniors to pay much higher premiums.
Here's a summary from Fox:
- According to Congressional Budget Office estimates, the Lieberman/Coburn proposal would save approximately $500 billion over 10 years and reduce Medicare spending in the out years.
- It would extend the solvency of Medicare Part A by allocating $250 billion of savings found through this proposal to the Medicare Part A Trust Fund, almost doubling the size of the fund.
- It would reduce Medicare’s 75-year unfunded liabilities by $10 trillion.
- It would significantly reduce the fiscal impact of the Medicare Part B program on the federal budget.
- For the first time in the history of the Medicare program, it would offer seniors catastrophic medical coverage to protect them from bankruptcy or massive health care debt due to an unplanned medical emergency or a long-term illness.
- It would contain a three-year “doc fix” that is paid for and will bring stability to Medicare’s provider system.
- It would preserve Medicare for current and future enrollees.
Press conference today announcing the plan:
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