Perspective               

Medicare Trust Fund: At Risk from Tax Cuts?

Families USA, a consumer health organization, as well as some Senate Democrats, say that President Bush's proposed budget weakens the Medicare Part A Trust Fund, which is supposed to pay for hospital care, nursing home care, hospice services, and some home health care. They believe that the President's proposed budget would move $526 billion over the next 10 years out of the Medicare Hospital Insurance Trust Fund and use it to pay for a portion of Medicare Part B, which covers doctors, outpatient hospital, home health, and other services.

But, by law, general revenues should fund Medicare Part B, not the Part A Trust Fund. If the President intends to use Part A Trust Funds to pay for a portion of Part B costs, he will free up $526 billion in general revenues to fund tax cuts, military weapons, and other programs. By the end of the 10-year budget cycle, the Trust Fund would be short $105.8 billion instead of having an extra $592.7 billion.

The Bush administration has not denied Families USA's statement, claiming only that the "President's budget reserves all Medicare funds for Medicare." If you want to express your views about this issue, write your Senator or Congressperson. To find out how to contact them, go to www.visi.com/juan/congress.

_________________________________