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AMA & AARP to WSJ: SCHIP - Shape health care

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August 20, 2007 (published)

Wall Street Journal
Letter to the Editor

To the Editor:

We agree with your editorial "The SCHIP Revelation" (Aug. 9) that the health care bills recently passed by Congress set up important debates for the fall, but we take issue with virtually every other part.

Contrary to your characterization of SCHIP as government-run health care, a full 70 percent of kids on SCHIP get their coverage from private insurers. The House bill addresses critical Medicare issues, making it a key intergenerational package that takes needed steps to ensure affordable, quality health care for seniors and kids.

The bill also prevents a looming 10 percent cut in physician fees that will harm seniors' access to care unless Congress acts by year's end. To help low-income seniors, the House bill raises asset test limits to stop penalizing low-income savers. The bill also covers more preventive services without co-payment, reduces cost sharing for mental-health services, and protects access to care in rural areas.

To pay for these changes, the House bill reduces excess payments to Medicare Advantage plans. Both the nonpartisan Medicare Payment Advisory Commission and Congressional Budget Office agree that Medicare pays these private insurers too much, which contributes to soaring premiums and weakens Medicare's long-term financing.

This is not a debate about government versus private insurance — both will be part of any real solution. It's about whether elected officials can set aside rhetoric, break the gridlock, and begin to take the necessary steps to strengthen health care for all.

Sincerely,

William D. Novelli
CEO
American Association of Retired Persons

Edward L. Langston, MD
Board Chair
American Medical Association

Last updated:Aug 20, 2007
Content provided by: Media Relations