Medicare is an integral part of our nation’s health care system, serving more than 46 million elderly and disabled Americans.  I am committed to maintaining the fiscal integrity of Medicare and ensuring that Medicare’s current and future beneficiaries have access to the health care services they need.  During my time in the U.S. Senate, I have supported numerous initiatives to help protect Medicare for Virginia’s seniors. 

I supported passage of the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148) and the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152).  I also voted against the repeal of these laws during debate on the FAA Air Transportation Modernization and Safety Improvement Act (S.223).  I had misgivings with some portions of these laws.  In fact, I voted in support of several proposed modifications to protect Medicare and Medicare Advantage from potential cuts.  However, I believe they do represent a true step forward in terms of quality, accessibility, and affordability of health care for many Americans. 

Because of changes made by the new law, Medicare beneficiaries who reach the Medicare part D “donut hole” will receive drug discounts until the donut hole is completely eliminated in 2020. They may also schedule an annual wellness visit and receive preventive health services without any out-of-pocket cost.

The law also contains new tools to improve and enhance the Administration’s efforts to prevent and detect fraud and crack down on criminals who attempt to defraud Medicare, Medicaid and the Children’s Health Insurance Program (CHIP).  On January 24, 2011 the U.S. Department of Health and Human Services issued new rules to help fight waste, fraud and abuse in these programs. 

Specifically, the rules:

• Create a rigorous screening process for providers and suppliers attempting to enroll in Medicare, Medicaid, or CHIP;
• Suspend enrollment of new providers and suppliers in specific categories or geographic areas if irregularities are detected ;
• Suspend payments to providers and suppliers that are under investigation for fraud

Increased efforts to fight fraud, including the creation of the Health Care Fraud Prevention and Enforcement Team (HEAT) in 2009, led to the recovery of more than $4 billion in fiscal year 2010.  This is the highest annual amount recovered to date.

Based on these and other changes made by the new law, an August 2010 report issued by the Medicare Board of Trustees concludes that the PPACA will save Medicare money.  The report estimates that the health reform law will postpone the depletion of Medicare’s trust fund by twelve years, from 2017 to 2029. 

While this report is encouraging, there is still some uncertainty about the impact of the PPACA on Medicare.  I remain concerned about the impact of changes to Medicare Advantage, particularly in rural areas.  As PPACA implementation continues, I will work with members of Congress from both political parties to ensure that cost savings are achieved in the health care system and that we continue to refine and improve the law as it becomes necessary and appropriate. 

For more information on the PPACA, please visit www.healthreform.gov.