Clinton Offers Medicare Plan
On the first working day of his second term, President Clinton unveiled Medicare reforms as a peace offering in his budget war with the Republicans who control Congress.
“I want to meet them halfway on this and on many other issues,” Clinton said Tuesday.
Clinton’s new Medicare plan would trim $138 billion from projected spending over six years, compared with $124 billion in his last plan. Most of the extra savings would come from reduced payments to health maintenance organizations.
For beneficiaries, there are pluses and minuses. The plan would expand preventive coverage and institute some new consumer protections, but premiums would rise more rapidly in the long run.
Hospitals, doctors, and nursing homes would have to make do with less from Medicare. HMOs would probably eliminate some benefits they now offer Medicare patients, such as free health club memberships.
John Rother, senior lobbyist for the American Association of Retired Persons, called the proposal “within the range of what is doable.”
Reaction was also positive from top Republicans.
“This is a very positive and significant development,” said Rep. Bill Archer of Texas, chairman of the House Ways and Means Committee, which must approve any Medicare changes.