Obama Weekly Address: Medicare on a sounder financial footing because of Health Care Reform

WASHINGTON- In his weekly address this week, President Obama highlighted a Medicare Trustees report noting the steps we took this year to reform the health care system have put Medicare on a sounder financial footing, which will help to preserve Medicare for generations to come. Additionally, America’s seniors are already seeing more benefits as a result of health reform, including a rebate to cover the cost of their prescriptions if they fall into the Medicare Part D drug coverage gap. In the coming years, as we continue to ramp up reform, we expect seniors to save in premiums and out of pocket costs. And the President will continue to make Medicare stronger to ensure our seniors have access to affordable and quality healthcare. 

Remarks of President Barack Obama
As Prepared for Delivery
Saturday, August 7, 2010
Washington, DC

Forty-five years ago, we made a solemn compact as a nation that senior citizens would not go without the health care they need.  This is the promise we made when Medicare was born.  And it’s the responsibility of each generation to keep that promise.

That’s why a report issued this week by the Trustees who oversee Medicare was such good news.  According to this report, the steps we took this year to reform the health care system have put Medicare on a sounder financial footing.  Reform has actually added at least a dozen years to the solvency of Medicare – the single longest extension in history – while helping to preserve Medicare for generations to come. 

We’ve made Medicare more solvent by going after waste, fraud, and abuse – not by changing seniors’ guaranteed benefits.  In fact, seniors are starting to see that because of health reform, their benefits are getting better all the time.

Seniors who fall into the “doughnut hole” – the gap in Medicare Part D drug coverage – are eligible right now for a $250 rebate to help cover the cost of their prescriptions.  Now, I know for people facing drug costs far higher than that, they need more help.  That’s why we negotiated a better deal with the pharmaceutical companies for seniors.  So starting next year, if you fall in the doughnut hole, you’ll get a 50-percent discount on the brand-name medicine you need.  And in the coming years, this law will close the doughnut hole completely once and for all.

President Barack Obama - White House Photo, Samantha Appleton

Already, we have put insurance companies on notice that we have the authority to review and reject unreasonable rate increases for Medicare Advantage plans.  And we’ve made it clear to the insurers that we won’t hesitate to use this authority to protect seniors. 

Beginning next year, preventive care – including annual physicals, wellness exams, and tests like mammograms – will be free for seniors as well.  That will make it easier for folks to stay healthy.  But it will also mean that doctors can catch things earlier, so treatment may be less invasive and less expensive. 

And as reform ramps up in the coming years, we expect seniors to save an average of $200 per year in premiums and more than $200 each year in out of pocket costs, too. 

This is possible in part through reforms that target waste and abuse and redirect those resources to where they’re supposed to go: our seniors. We’re already on track to cut improper payments in half – including money that goes to criminals who steal taxpayer dollars by setting up insurance scams and other frauds.  And we won’t stop there.  Because by preventing the loss of these tax dollars, we can both address the runaway costs of Medicare and improve the quality of care seniors receive – and we can crack down on those who prey on seniors and take advantage of people. 

So we are no longer accepting business as usual.  We’re making tough decisions to meet the challenges of our time.  And as a result, Medicare is stronger and more secure.  That’s important.  Because Medicare isn’t just a program.  It’s a commitment to America’s seniors – that after working your whole life, you’ve earned the security of quality health care you can afford.  As long as I am President, that’s a commitment this country is going to keep. 

Thank you.

  3 comments for “Obama Weekly Address: Medicare on a sounder financial footing because of Health Care Reform

  1. August 7, 2010 at 6:59 pm

    “The decision is not whether or not we will ration care – the decision is whether we will ration with our eyes open. And right now, we are doing it blindly”.

    Quote from Dr. Donald Berwick, Obama’s recess appointment to the new Administrator of the Centers for Medicare and Medical Services within the Department of Health and Human Services. Berwick will manage both Medicare and Medicaid; he will also preside over just how that $500 billion cut in Medicare, which was required to keep the costs of ObamaCare under $1 trillion, will be accomplished.

    Impeach Obama or die under Nazi health care.


    • August 7, 2010 at 7:11 pm


      Do us all a favor please. Drop the Nazi health care mantra. It doesn’t even make any sense. THer is no evidence that anything in the health care reform legislation will lead to rationed care. Nothing, nada, zip, so please try to be rational. I know it’s difficult, but please at least give it a shot.

      And really, Impeach Obama? For what, signing a piece of legislation that passed through Congress?

      • August 7, 2010 at 8:12 pm

        Dr. Donald Berwick says there will be rationing, and he’s in charge, (see my comment above and click the link).

        He praises the U.K.’s system.
        National Institute for Health and Clinical Excellence
        British NICE: Who Gets Medical Care, Who Dies

        O.K. Impeach Obama AND change congress!

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