AARP on Medicare Trustees Report

“Medicare’s accelerating insolvency… will only be fixed by comprehensive reform in 2009.”

May 12, 2009 -- WASHINGTON— AARP Executive Vice President John Rother issued the following statement on today’s release of the Medicare Trustees report.

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“This year’s report by the Trustees is yet another clarion call for health care reform.

“Medicare’s accelerating insolvency is largely a result of two problems—an economic recession that is increasing demand on public health programs while lowering revenues, and skyrocketing costs throughout the health care system—that will only be fixed by comprehensive reform in 2009.

“Skyrocketing health care costs are squeezing individuals and employers, as well as threatening the security of Medicare—a lifeline for tens of millions of Americans.

“The good news, however, is that there are health care reform solutions that can strengthen Medicare for future generations as well as those in the program today.

“As the White House and Congress work together on reform legislation, we are telling them that any final package must include the creation of a Medicare follow-up care benefit, which would help people safely transition to their homes or another setting after a hospital stay, coordinate their health care needs and prevent unnecessary hospital readmissions.

“A follow-up care benefit is one of many solutions that, if done right, can lower costs for individuals and improve the quality of health care, all while saving billions of dollars.

“To ensure that Medicare can remain strong for future generations, we also need real health delivery system reform that eliminates waste, inefficiency, and fraud to bring down costs throughout the system. That includes cutting subsidies to private Medicare Advantage plans and improving the coordination of care in both public programs and private plans, as well as reducing drug prices through measures like creating a pathway for generic versions of biologic drugs.

“There will be cynics today who only focus on a symptom—Medicare’s accelerating insolvency—instead of the much larger problem posed by skyrocketing health care costs. At this stage of the game, however, we should all be focusing on solutions.

“We cannot solve the problems in Medicare without addressing the crisis that plagues our entire health care system. Congress and the White House must work together to pass comprehensive reform this year so that our children and grandchildren can count on the same security that Medicare has provided to their families for decades.”

For more information about AARP’s health reform campaign, please visit www.aarp.org/GovernmentWatch.

AARP