The Republican plan to end Medicare as we know it, supported by Congressman Steve Pearce, raises costs for seniors and individuals with disabilities, reduces their benefits, and puts private insurance companies in charge of seniors’ health care. For current beneficiaries, important benefits—such as closing the hole in Medicare’s drug coverage—would be immediately eliminated. For individuals age 54 and under, Medicare’s longstanding guarantee of comprehensive coverage would be replaced with an inadequate federal subsidy to buy private health insurance. By design, this federal contribution will not keep pace with medical costs, shifting thousands of dollars in costs onto individuals.
Similarly, the Republican Medicaid plan eliminates Medicaid ‘s guarantee of coverage. Medicaid would be turned into a block grant, and the federal contribution to Medicaid would be slashed by nearly $800 billion over the next decade. Other changes proposed by House Republicans would allow states to eliminate coverage for seniors, nursing home care, individuals with disabilities, children, pregnant women, and others currently enrolled in Medicaid. These changes would have a profound impact on Medicaid’s ability to provide health coverage to millions of Americans, and will shift tens of billions of dollars in costs to state taxpayers.
The Republican proposal, supported by Congressman Steve Pearce, would have adverse impacts on seniors and disabled individuals in the 2nd Congressional District who are currently enrolled in Medicare. It would:
- Increase prescription drug costs for 6,800 Medicare beneficiaries in the district who enter the Part D donut-hole, forcing them to pay an extra $67 million for drugs over the next decade.
- Eliminate new preventive care benefits for 104,000 Medicare beneficiaries in the district.
The Republican proposal, backed by Congressman Steve Pearce, would have even greater impacts on individuals in the district age 54 and younger who are not currently enrolled in Medicare. It would:
- Deny 480,000 individuals age 54 and younger in the district access to Medicare’s guaranteed benefits.
- Increase the out-of-pocket costs of health coverage by over $6,000 per year in 2022 and by almost $12,000 per year in 2032 for the 87,000 individuals in the district who are between the ages of 44 and 54.
- Require the 87,000 individuals in the district between the ages of 44 and 54 to save an additional $20.3 billion for their retirement – an average of $182,000 to $287,000 per individual – to pay for the increased cost of health coverage over their lifetimes. Younger residents of the district will have to save even higher amounts to cover their additional medical costs.
- Raise the Medicare eligibility age by at least one year to age 66 or more for 51,000 individuals in the district who are age 44 to 49 and by two years to age 67 for 396,000 individuals in the district who are age 43 or younger.