Congressman Pete King

Rep. King Statement on the Impact President Obama’s Health Reform will have on Medicare

October 1, 2009

Many people in the 3 rd Congressional District have recently contacted me to obtain more information on the impact President Obama’s proposed health reform legislation (H.R. 3200) would have on Medicare beneficiaries. Many of you have been paying close attention to the debate and have called to find out more details on the President’s plan.

In his address to Congress on September 9 th, President Obama stated that the Medicare program would be cut by $500 billion dollars under his plan. In response to this, many senior citizens have asked me where the proposed Medicare savings is coming from and how there benefits might be affected. As the debate continues here in Washington, I want you to be aware of the facts. Under H.R. 3200, $156 billion dollars will be taken from Medicare Advantage. The non-partisan Congressional Budget Office (CBO) estimates that this will cause 3 million seniors (almost 20%) to lose access to their current plan due to premium increases or companies no longer participating in Medicare Advantage due to these cuts.

Nearly a quarter of the 45 million Medicare beneficiaries participate in a Medicare Advantage plan, including tens of thousands on Long Island who participate in plans such as HIP and Mediblue. Medicare Advantage programs offer seniors enhanced benefits that can include protection against high out of pocket costs, vision and dental coverage, and free preventative care and cancer screenings not covered by traditional Medicare.

Let me be clear that this is not about politics or scare tactics. It is about cutting through the rhetoric and letting you know what is being proposed. The reality of this debate is that, at the end of the day, there are going to be real cuts made to real programs that cover real people. If they are to be terminated, then let’s phrase the debate honestly and address the matters at hand.

I strongly support responsible reform by ending archaic practices such as denying individuals for pre-existing conditions or typographical errors on claims. I also support eliminating lifetime caps and allowing small businesses to ban together to purchase health insurance. There are many aspects of health reform on which we can all agree. What I refuse to support, however, is a government run program which will be paid for by reducing coverage which many senior citizens now have. This is too important not to get it right.