John McCain and Medicare

Bumped up from the Forums. -Jeff

In an article addressed to “senior citizens of America,” Doug Holtz-Eakin, Senator McCain’s chief domestic policy adviser, assures us that John McCain poses no threat to Medicare (http://www.orlandosentinel.com/news/opinion/letters/orl-mywordeakin2108o...). According to Holtz-Eakin, “seniors will receive higher quality care at lower costs and reduced premiums.” This sounds good, but when it comes to Medicare, seniors should beware Republicans bearing gifts.

Like George W. Bush, McCain seeks to undermine our system of employer-based insurance (EBI), under which most people receive coverage. Many experts have noted that McCain’s proposal to remove the tax exemption for EBI would give businesses an incentive to stop covering their employees and force millions into the unregulated, nongroup market, which typically offers fewer benefits than EBI. Companies continuing to offer coverage would face an exodus of younger and healthier workers attracted by ostensibly lower prices in the nongroup market. This would concentrate older and less healthy workers in the employer based system and cause premiums there to skyrocket. Ultimately, this system would collapse, leaving many individuals, particularly those with preexisting conditions, unable to find coverage.

Independent estimates place the cost of Senator McCain's plan at $1.3 trillion over ten years (http://online.wsj.com/article/SB122315505846605217.html). McCain believes he can pay for this in part through cuts in Medicare that would leave seniors with ‘exactly the same benefits’” (http://www.nytimes.com/2008/10/19/us/politics/19health.html?ref=health). However, a report by the Center for American Progress Action Fund (CAPAF) (http://www.americanprogressaction.org/issues/2008/pdf/mccain_health_stra...) questions this. CAPAF estimates that as a result of Senator McCain’s reductions, Medicare’s expenditures will not “keep pace with inflation and enrollment growth—thereby requiring cuts in benefits, eligibility, or both.” While the McCain campaign has identified some ways they would reduce Medicare spending that would not impact beneficiaires, it is difficult to see how these amount to the vast sum needed to subsidize the Senator's health care plan (http://blogs.abcnews.com/politicalpunch/2008/10/obama-attacks-m.html).

In the long run, we can only solve Medicare's problems by reining in health care costs generally. Compared in this regard with Barack Obama, John McCain's proposals fail miserably (http://www.commonwealthfund.org/publications/publications_show.htm?doc_i...). Obama and Biden have pledged to protect and strengthen Medicare and have the votes to back it up (http://thecaucus.blogs.nytimes.com/2008/07/09/kennedy-returns-to-the-sen...).

We all know that actions speak louder than words. This past summer, Senator McCain had a real opportunity to defend Medicare when the Senate voted on a bill that would have benefitted "doctors and patients at the expense of overpaid private health plans" (http://www.nytimes.com/2008/07/05/opinion/05sat2.html?_r=1&oref=slogin). Unfortunately, McCain skipped this critical vote. When the bill was reconsidered a few days later, even an ailing Senator Kennedy made it to the floor to vote. The only Senator not to vote on this critical bill was John McCain (http://thecaucus.blogs.nytimes.com/2008/07/09/kennedy-returns-to-the-sen...). Obama and Biden voted for the bill.

Ohio seniors should think twice before trusting Medicare, and their vote, to John McCain.