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Debunking Senior Health Reform Myths and Rumors

The rumors are still swirling around Health Care Reform, the Affordable Care Act passed in March, 2010. Most of the rumors concern how the health care law impacts senior citizens. With over 1,200 pages of legislation and details that are yet to be worked out, it's no wonder that misinformation abounds. Here we'll take a look at three myths of Health Care Reform, specifically looking at seniors.

Myth 1: Health care for seniors will be rationed under reform

Fact: Health Care Reform establishes an Independent Payment Advisory Board (IPAB) to reduce the costs of Medicare. IPAB is one of the most controversial provisions in the Health Care Reform legislation. The Board is independent of Congress and the Department of Health and Human Services and opponents fear it could be used as a mechanism to control Medicare. In fact, many are concerned that the IPAB allows bureaucrats to make changes to Medicare without transparency and accountability to America's senior citizens and their elected officials. It is not a board that will make direct health care decisions regarding a senior citizen.

Myth 2: Health Care Reform will substantially cut Medicare benefits

Fact: Many of the changes to Medicare will impact the Medicare Advantage Plans (known as Medicare Part C). The Medicare program pays Medicare Advantage insurance providers an average of $1,000 more per person than traditional Medicare. Health Care Reform seeks to level the playing field by reducing payments to providers since allMedicare beneficiaries pay the price of these additional costs through higher premiums.

Medicare Advantage Plans may change as a result of these reduced reimbursement rates. Premiums may rise and some plans may reduce the extra benefits they provide. Opponents to the Affordable Care Act worry that some insurance companies may stop offering Medicare Advantage policies altogether. It is important to note that senior citizens currently enrolled in a Medicare Advantage Plan will have the option to return to traditional Medicare should they not like any changes to their plan.

Myth 3: Seniors will have to pay more for Medicare benefits

Fact: Starting in 2011, Medicare Part D enrollees who earn more than $85,000 ($170,000 for married couples filing jointly) will be forced to pay a 'high-income surcharge' for Part D premiums. This high income surcharge is currently in place for Medicare Part B, and the average cost can be raised from $96 monthly to $155 monthly or more as a result.

Health Care Reform freezes the high-income surcharge limit on Part B coverage at the current level from 2011 to 2019, rather than allowing increases with inflation, potentially making more seniors qualify for this surcharge. It also imposes this same high-income surcharge on Medicare Part D premiums. The details of the cost of this surcharge have not yet been revealed.

On the other hand, if you're a senior who makes less than $85,000 a year, then you will likely be saving money through health care reform, at least according to figures provided by the Center for American Progress using data from the Kaiser Family Foundation.