Treatment for Medicare's Budget: Quick Operation or Long-Term Care?

Abstract

This article draws attention to the long-term implications of Congress' 1997-1998 budget resolution to Medicare's increased charges. Because Congress has only dealt with Medicare's short-term problems, the author contends, Medicare's long-term problems have become increasingly worse. Medicare is non-integrated status in the Fiscal Constitution and experiences rising costs every year. Therefore, Congress' failure to adequately address and deal with Medicare's long-term problems will result in bankrupting Medicare's hospital insurance funds, which will leave millions of Americans without the health-care they need.

To address these issues, the author describes several resolutions, among which, he contends, Congress will have to choose. These solutions include cost reduction and revenue increasing possibilities, as well as provider payment cuts, increased charges to beneficiaries, and payroll tax increases. Finally, the author discusses ways in which Congress could facilitate legislation to deal with short-term problems that will, in turn, help reduce the long-term stress Medicare imposes on American fiscal decision-makers as well as protect the long-term interests of Medicare beneficiaries.

Keywords: Medicare, budget, Fiscal Constitution, 1997-1998 Medicare resolution, Budge Enforcement Act, Congressional Budget and Impoundment Control Act (CBA), hospital fund, beneficiaries, Social Security reform, healthcare, "Baby Boomers", 105th Congress, Cost Reduction, President Clinton

JEL Classification: K19, K39, I18, H51