Washington,
DC - A new state-by-state
analysis by the U.S. Congress Joint
Economic Committee (JEC) finds that in each state in the country,
out-of-pocket health care costs will more than double for residents turning 65
in 2022 under the Republican budget plan passed by House Republicans in April.
The
non-partisan Congressional Budget Office has estimated that a typical
65-year-old Medicare beneficiary in 2022 would see their out-of-pocket health
care costs increase from $6,154 to $12,513 under the Republican budget.
Using that data along with cost-sharing data from the Centers for Medicare and
Medicaid Services, the JEC has estimated out-of-pocket costs on a
state-by-state basis. While the increase varies by state, residents in
all states will see their out-of-pocket expenses more than double when they
turn 65 in 2022. Residents in Florida face the largest increase –$7,383.
The report
also shows that current Medicare beneficiaries will be harmed by the GOP
budget, immediately losing preventive services such as mammograms and facing
higher prescription drug costs.
“This new JEC
analysis helps to fill in the picture on just how disastrous and costly the
Republican Medicare plan is for our older Americans,” said Senator Bob Casey
(D-PA), Chairman of the JEC. “If Republicans have their way,
traditional Medicare will no longer exist in 2022. Instead, our
elderly will get a voucher to purchase private insurance, but the voucher won’t
keep pace with health care costs. The result would be a staggering
increase in out-of-pocket costs beginning in 2022. In my state of
Pennsylvania, someone turning 65 in 2022 would face a $6,300 increase in their
health care expenses. Our elderly Americans cannot afford to have their
health care expenses double, but that’s exactly what the Republican plan
delivers.”
The increased
out-of-pocket costs result from older Americans bearing a larger share of
health care costs under the Republican plan and the increase in total health
care costs that results from shifting from traditional Medicare to a less
efficient, more expensive voucher program.
“The
Republican Medicare plan doesn’t rein in health care costs,” continued
Casey. “Instead, it simply shifts the costs onto the backs of our
elderly. The Republican ‘solution’ is providing our elderly with
dramatically higher costs and less care. Current beneficiaries will
suffer and the next generation will face retirement without Medicare and
without the peace of mind it offers.”
Current
Medicare beneficiaries will lose key benefits under the GOP budget, the report
notes. The Republican plan reopens the donut hole – the gap in Medicare
Part D that had forced beneficiaries to pay 100 percent of their drug costs
after they exceeded an initial coverage limit and until they qualified for
catastrophic coverage. Additionally, the Republican plan eliminates the
free annual wellness exam beneficiaries currently receive and forces older
citizens to pay for preventive services such as mammograms.
Please click here
for the state-by-state breakdown of the increase in out-of-pocket health care
costs.
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The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
