Medicare Provisions

The Affordable Healthcare for America Act (2009) is planning on making provisions to Medicare, mainly for cost saving purposes. One way they are attempting to do this is by altering the benefits received by the low income population. This population includes individuals making less than $17,000 and couples making less than $34,000 annually. This act suggests, “increasing the threshold used to determine eligibility for the Medicare Savings Program.” (2009). By making it more difficult to get Medicare, less people will be given the benefits of Medicare and therefore decrease spending. This Act would also implement cost sharing between Medicare and Medicaid for Medicare beneficiaries over the age of 65.

The Medicare provisions are also focusing on reforming the prescription drug benefits. The plan is hoping to eliminate a prescription drug coverage gap by, “progressively increasing the initial coverage limit and decreasing the annual out of pocket threshold coverage limit.” (2009). This would also involve a negotiation of drug prices between the Secretary of HHS and manufactures. Hopefully this would make it possible to provide a 50% discount on brand-name drugs for Medicare beneficiaries.

Here is a pie graph for a simplistic breakdown of Medicare’s planned spending and saving in the Affordable Healthcare for America Act (2009).




Kaiser Family Foundation (November 21, 2009). Summary of Key Medicare Provisions in H.R. 3962, Affordable Health Care for America Act. Retrieved from http://www.kff.org/healthreform/upload/7948_HR3962_Summary-2.pdf

Alia Torfa