By
Washington
Insurance and business groups are praising President Bushs new Medicare reform proposal, saying it would modernize the financially troubled program.
"President Bush clearly understands that strengthening and improving Medicare will require giving older Americans access to the same kinds of modern health care choices that private health insurers already offer to millions of working Americans," says Donald Young, president of the Health Insurance Association of America, Washington.
Neil Trautwein, director of employment policy for the National Association of Manufacturers, Washington, also praises the proposal, with the caveat that employers that provide drug coverage to their retirees be able to coordinate these benefits with all new Medicare options.
The presidents proposal is encouraging, Trautwein says, but NAM wants to be sure that no Medicare beneficiary is treated differently simply because he or she receives retiree health benefits from a former employer.
But the Bush proposal drew sharp criticism from Families USA, Washington, a health care advocacy group.
The presidents plan, says Families USAs executive director Ron Pollack, will leave seniors without drug coverage unless they drop traditional Medicare for a private plan.
"Make no mistake, this proposal is a clear effort to privatize the Medicare program," Pollack says.
"Seniors in this new privatized Medicare will no longer have a guarantee of specific benefits and defined coverage," he says.
