Medicare at the Crossroads

Abstract

The 107th Congress will be faced with the task of Medicare reform. It may only take the form of a limited prescription drug benefit or it may involve comprehensive structural reform. For nearly 36 years, the Medicare program and its structural components, entitlement status, financing methodology, and basic benefit package have remained fairly stable. The Medicare Catastrophic Coverage Act, passed in the late 1980s and repealed a year later, would have achieved substantial reform, especially in the area of prescription drug coverage. Concern about the solvency of the Medicare trust fund after the year 2030 provides an even more urgent call for reform.