CBS has spent a good bit of air time telling viewers where the candidates stand on the issues. And, to its credit, it devoted one segment to explaining Medicare, a complicated enough program that has been ignored by the media and the candidates. Both John McCain and Barack Obama have avoided the subject for fear of telling voters what really needs to be done to fix it—raise taxes to sustain the program, cut benefits, or make seniors pay more of their medical care themselves. In other words, further privatize the program. CBS showed how Medicare might affect three generations of the Schindle family: its eighty-eight-year-old mother, her two daughters, ages sixty-five and fifty-six, and a granddaughter, age thirty-eight.
But the segment, billed as an “in-depth look,” came across as shallow and revealed how little people really know about one of the government’s most popular programs. CBS missed a chance to educate the public about Medicare, instead choosing to pass along myths that the media should dispel. The segment made the point that, if it weren’t for Medicare, the family’s matriarch would not have health care; millions of others wouldn’t, either. It then reported that Medicare will be a “mixed bag” for her daughters. The sixty-five-year-old who just signed up was “stunned by the 20 percent co-pays.” “I thought Medicare was just gonna take care of everything,” she said. Really? Where has she been and where has CBS been?
Medicare has called for 20 percent coinsurance since its beginning in 1965. That’s coinsurance, a percentage of a medical bill, not copayments, a specific dollar amount paid for a service—a big difference, and one that CBS inexplicably did not clarify. Instead it followed up with a nonsensical quote from the daughter: “Everybody that has worked, has paid into the system and the fat cats get fatter—where’s all this money going to?” Well, yes, everyone who has worked pays into Medicare, but what does that have to do with the fat cats—and which ones? CBS used the quote to get to a major point it wanted to make: that the part of Medicare that pays for hospital care “is set to go broke by 2019,” because of the rising costs of health care.
That’s the doomsday scenario John McCain advanced the few times he did talk about Medicare during the campaign. CBS reported that both Obama and McCain concede Medicare is in trouble, but then quoted McCain, making the same point the network made earlier: “By 2019, there will be no money left.” McCain, CBS said, “blames bloated bureaucracy. Arguing doctors and clinics should get lump-sum payments for quality care instead of being paid for individual tests and treatments.”
Okay, another non-sequitur. How docs get paid has nothing to do with the administration of the program. For the record, Medicare has low administrative costs compared to commercial insurance companies. Marilyn Moon, a former Medicare trustee and now vice president at the American Institutes for Research, says the administrative costs of Medicare run between two and four percent of the more than $425 billion it spends on care each year, compared to nine to 25 percent for commercial insurers.
As for the hospital trust fund going broke, Moon says the situation isn’t as bleak as some people— generally conservatives who favor more privatization—say. We’ve heard doomsday talk before, but Congress always fixed the program. In the 1990s, politicians claimed that Medicare was supposed to run out of money by 2001. That didn’t happen then, and it won’t happen now, Moon predicted. “Talking about it going broke makes it sound more dire than it is and makes it sound like we need to do much more drastic things than we will need to put the program in good shape,” she says.

Trudy--
You're right-- CBS skimmed the surface in an often confusing way. But it's very hard to explain Medicare on TV.
You'd need a 1 1/2 hour documentary.
Very briefly: Firstl, Medicare is running into financial trouble because healthcare costs are rising too quickly.
In the past we were able to "fix" Medicare by raising FICA taxes etc., but now ruanway inflation, compounded year after year--is beyond easy "fixes."
This is true, not just of Medicare, but of heatlhcare spending ovevrall. For the last 9 nine years, the amount that private insurers have paid out in reimbursements has gone up 8% to 8.5% each adn every year.
This is because the price of everythign continues to rise, and meanwhile doctors are "doing more" to their patients--more tests, more treatments, more procedures, using more drugs, more devices.
We have very good research suggesting that about 1/3 of the money is spent on unnecessary, ineffective, unproven, and often overpriced treatments.
Too many people in our for-profit healthcare system are selling--and selling hard.
CBO director Peter Orszag recently pointed to spiralling heatlh care costs as the major driver behind our fiscal problems, pointing to Medicare as "unsustainable" and saying that if we don't manage to constrain health care spending, foreign investors will stop buying our Treasuries --unless we pay "exorbitant" interest rates.
Foreign investors now own 55% of our Treasuries--and we need those investors. IF we have to hike the interest rates we pay them, we face high interest rates throughout the economy, and a lower standard of living.
A recent report from the Centers for Health Systems Change, sponsored by the Robert Wood Foundation explains what is driving runaway health care inflation: our inefficient overuse of often advanced medical technologies. This includes new drugd, devices, tests and surgical procedures.
Too often we use these new treatments on people who don't benefit. Too often we use cutting edge treatments when there is no medical evidence that they are more effective than much less expensive treatments that we already have.. (The FDA requires only that new treatments be tested against a placebo--proving only that they are better than nothing.),
Recent reserach suggests that half of the people who receive angioplasties derive no benefit.
This is a hazardous waste of money--hazardous because the patients are exposed to needless risk.
We will have to become much more "selective' in our use of these technologies Orszag suggests.
Right now, there is legislation in Congress to create a Comparative Effectiveness Institute that could
oversee unbiased reserach, comparing treatments for patients who fit a certain profile.
That information then could be made public, and Medicare might begin charging lower co-pays for the most effective treatments and higher co-pays for the least effective treatments.
Also, Medicare is likely to move away from fee-for-service payment of doctors--which encourages over-treatment.
I've written about this at www.healthbeatblog.org.
Posted by Maggie Mahar on Tue 4 Nov 2008 at 11:43 AM
Thanks Maggie. A long form documentary on Medicare might be a great idea. Some enterprising producer can start with your good comments for basic information. The more discussion, the better.
Trudy
Posted by trudy lieberman on Tue 4 Nov 2008 at 03:01 PM