Medicare Administrator Defends Recess Appointment

Medicare and Medicaid Administrator Donald Berwick defended his decision to accept President Barack Obama’s recess appointment after it was criticized by a Republican Senator.

“The president of the United States asked me serve and help the country. It was a privilege to do it,” Berwick said during a hearing Wednesday with the Senate Finance Committee.

Sen. Jim Bunning (R-Ky.) described the appointment as “very, very controversial.”

“[It] clearly wasn’t an open and transparent process,” Bunning said. “The healthcare reform debate was far from open and transparent. Republicans got locked out of any negotiations.”

Bunning added that Republican leadership in the House will ensure that the administration is more transparent in the future.

Medicare May Be Better Off Despite Cuts, Claims Actuary

By Sarah Mamula - Talk Radio News Service

Although the recently passed health care reform law made $485 billion in cuts to the Medicare program, the social-security safety net may last longer than some have expected.

“We have a far better financial outlook for Medicare than we did a year ago, and that’s a direct result of the patient protection and affordable care act” said Richard Foster, chief actuary of the Centers for Medicare and Medicaid services, during a panel discussion at the American Enterprise Institute Friday in Washington, D.C.

Foster said that due to improvements in the healthcare system, the trust fund for Medicare hospitals is projected to run out in 2029 contrasting last year’s 2017 projection.

He stressed, however, that projections are unreliable. The success of the Affordable Care Act will depend on how it is implemented. 

“Nobody knows exactly how these things will work,” said Foster.

As Chief Actuary, Foster works to “provide objective technical information on behalf of policy makers” on the annual Medicare Trustees Report. 

Administration Officials Tout New Report On Status Of Medicare

The Democrats’ sweeping healthcare reform law will extend the life of the Medicare hospital insurance fund by 12 years, according to a new government report on the status of Medicare and Social Security.

According to U.S. Treasury Secretary Tim Geithner, the nation’s Medicare trust fund should stay solvent until 2029. In addition, the healthcare overhaul, passed earlier this year, improves the long-term outlook for the Social Security trust fund, which analysts previously warned will be depleted by 2037. In 2010, Social Security expenditures will exceed receipts for the first time in more than 25 years.

While the short-term prognosis for the two big entitlements is slightly troublesome, Geithner said the Medicare figures are encouraging.

“These are very, very substantial improvements,” he said during a briefing on Thursday.

U.S. Health and Human Services Secretary Kathleen Sebelius added that the “outlook for Medicare has improved greatly,” as a result of the new healthcare law.

Sebelius, however, said that Congress must work on finding a permanent solution to the way in which physicians that accept Medicare are reimbursed by the federal government. Congress recently extended the “doc-fix” as it is known, but officials from the Centers for Medicare and Medicaid Services (CMS) have concluded that continued temporary fixes will in the long run negate some of the savings produced by the Affordable Care Act.

Medicare Turns 45

Although 20 years short of qualifying for its own benefits, Medicare nevertheless reached an important milestone Friday.

45 years ago, President Lyndon B. Johnson signed Medicare, the social insurance safety-net, into law.

President Barack Obama marked the anniversary by issuing a proclamation lauding the program and pledging its continued support under his administration.

“As President, I will protect the promise of Medicare and Medicaid, and make sure they continue to be strong and solvent for our children and grandchildren,” Obama wrote.

The President also took the anniversary as an opportunity to tout the health care reform legislation he signed into law this March.

“The health care reforms in the landmark Affordable Care Act (ACA) renew and strengthen our pledge to America’s seniors and families, ensuring Medicare and Medicaid will be there when they need it,” the proclamation states.

Also acknowledging the milestone, the Republican National Committee issued their own statement charging that Medicare will be slashed under the new health care law and accusing Obama of backtracking on his pledge to seniors to protect the program.

“Happy 45h Birthday, Medicare!” the statement reads. “President Obama gave plenty of “gifts” to seniors on Medicare this year.”

Bipartisan Legislation Aimed At Ending Medicare Fraud

By Sarah Mamula - Talk Radio News Service

At Tuesday's House Ways and Means Committee hearing, new legislation aimed at resolving the estimated $60 billion of annual Medicare fraud was introduced by Rep. Ron Klein (D-Fla.) and Rep. Ileana Ros-Lehtinen (R-Fla.). The Medicare Fraud Enforcement and Prevention Act would double criminal penalties to a maximum ten year prison sentence and up to $50,000 in fines.

“Criminals have decided that building a Medicare fraud scam is far safer than dealing in crack or dealing in stolen cars, and it’s far more lucrative,” said Lewis Morris, Chief Counsel to the U.S Department of Health and Human Services (HHS). “Right now, it’s a good bet that you can take millions from us, and chances are, you’re not going to get caught.”

Klein criticized the “pay-and-chase” philosophy currently in place that gives room for criminals to succeed in obtaining money before law enforcement officials can make an arrest.

“One of the biggest flaws in our system is the unnecessary periods of time in which a potentially fraudulent claim is submitted, and when the proper law enforcement agency is alerted,” the Florida Democrat said.

If passed, Klein said new technology will be created and used to implement more strict pre-screening policies and a program using biometric measures will be piloted to “ensure that Medicare beneficiaries are physically present to receive services.”

“Our Medicare Fraud Enforcement and Prevention Act will provide badly needed reform to the Medicare system,” said Ros-Lehtinen. "We will soon restore our seniors' peace of mind and trust."