An amendment approved in the early hours of Friday allows changes that could lead to higher Medicare prescription drug premiums.
Senator Chuck Grassley said that early Friday morning, during final hours of work on health care reform legislation, the Senate Finance Committee agreed to changes that are bad for seniors, veterans and workers.
Grassley told the Associated Press: "Veteran's access to health care would be diminished, and workers wages could be garnished in the midst of growing unemployment and a prolonged recession, in order to pay for other spending in the health reform bill. The issue behind seniors being subjected to higher premiums in Medicare Part D also emphasize the reason why it's important for senators to have actual cost estimates from the Congressional Budget Office before being asked to vote on major policy changes."
The amendment would allow the new Medicare commission to recommend "reductions in federal premium subsidies" to the private insurance plans that deliver the prescription drug benefit. Grassley's office said the "premium subsidies" are taxpayers' share of the cost of the prescription plan. If those are reduced, the plans will make up the difference by raising premiums for seniors.
Taxpayers cover three-fourths of the cost of the benefit, while Medicare recipients pay only the remaining 25 percent.
"The Medicare commission will look broadly at Medicare to find savings and efficiencies in the Medicare program, which will only help seniors," said spokesman, Scott Mulhauser.
To help pay for the health care overhaul, hospitals have already agreed to forego $155 billion in Medicaid payments.