HAMPSTEAD, Md., Oct. 28, 2008
How Obama And McCain Differ On Medicare
CBS Evening News: How The Candidates Propose To Fix The Ailing Program
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Play CBS Video Video Obama, McCain On Medicare The poorly funded Medicare program has faced massive deficits and is predicted to go bankrupt by the year 2019. Nancy Cordes finds out where the presidential candidates stand on this issue.
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Ruth Louise Schindle says she owes her health and life to Medicare, but the two other generations of her family aren't so convinced that it is a sound program. (CBS)
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Photo Essay John McCain Some call him a hero, some a maverick. Will Americans call him Mr. President?
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Photo Essay Barack Obama A look at the life and meteoric rise of the president-elect.
Medicare
The eleventh installment of the series examines where each candidate stands on helping our ailing Medicare program.
The eleventh installment of the series examines where each candidate stands on helping our ailing Medicare program.
Obama:
- Believes private plans that contract with Medicare account for waste.
- Wants to authorize Medicare to negotiate with pharmaceutical companies to reduce prices.
- Believes in covering more preventive care - and that doing so could cut costs.
McCain:
- Believes doctors and clinics should be paid lump sums for quality care rather than individual tests and treatments.
- Opposed Medicare Part D in 2003.
- Wants wealthier recipients to pay for more of their own prescription drugs.
In this installment, CBS News correspondent Nancy Cordes reports on how the proposed Medicare policies of Barack Obama and John McCain would affect you and your community.
The Issue
Ruth Louise Schindle owes her life to a government program she never thought she would even need.
"I am 88," she said. "I've had cancer, I have heart problems and I go to dialysis."
She takes 11 different drugs. Her monthly medical bills are in the thousands - paid for, mostly, by Medicare.
"Where would you be without Medicare?" Cordes asked.
Schindle said: "Only God knows that. I don't know."
She lost her private health insurance in 2003, after the once-mighty Bethlehem Steel, her late husband's lifelong employer, went belly-up.
"It's just like pulling the rug out from under ya," Schindle said.
But for her daughters, Medicare is a mixed bag.
Ruthie Schindle signed up two years ago, when she became eligible at 65.
"I thought Medicare was just gonna take care of everything," she said.
She was stunned by the 20 percent co-pays.
"Everybody that has worked, has paid into the system and the fat cats get fatter - where's all this money going to?" she asked.
Mostly, it's gone to pay the rising cost of health care.
Medicare spending has increased 40 percent in the past four years - from $309 billion in 2003 to $431 billion in 2007.
At this rate, the trust fund for Medicare "Part A," which covers hospitalizations and is funded by payroll taxes, is set to go broke by 2019.
That's right around the time Ruthie Schindle's 56-year-old sister, Donna, becomes eligible.
"It might not be there! You know, you just never know," she said.
What can you do to prepare for that possibility?
"Just do a lot of praying," Donna said.
Jump down a generation, and 38-year-old Debbie, who handles most of her grandmother's Medicare bills, is even more pessimistic.
"Medicare is obviously going to have a new face when I get there and I know that," Debbie said.
Debbie said she doesn't understand where Barack Obama and John McCain stand when it comes to Medicare.
Donna added: "No. They keep flippin', changing the subject."
The Candidates
Both Sens. Barack Obama and John McCain concede Medicare is in trouble.
"By 2019, there will be no money left!" McCain has said.
He blames bloated bureaucracy. Arguing doctors and clinics should get lump-sum payments for quality care, instead of being paid for individual tests and treatments.
"What about the idea of saying, 'OK,' to a healthcare provider. 'A heart transplant is going to be based on the overall outcome and care that you provide for that patient,'" he said.
Obama sees waste in the private plans that contract with Medicare to manage the treatment of a quarter of its recipients - about 10 million seniors. Studies show those plans cost the government roughly 13 percent more than traditional medicine.
"It doesn't help seniors get any better. It's not improving our health care system. It's just a give-away," Obama said.
A major area of contrast is prescription drug coverage, also known as Medicare Part D, which Congress passed in 2003. McCain opposed it then, saying "we didn't have a single way of paying for it."
Now he argues Medicare could save $2 billion a year by making wealthier recipients - say, those making more than $80,000, pay for a larger share of their own drugs.
"People like Bill Gates, Warren Buffett, don't need their prescriptions ... underwritten by taxpayers," McCain said.
Obama, on the other hand, wants to authorize Medicare to negotiate with pharmaceutical companies to bring down drug prices - like the Veterans Administration does. He also thinks Medicare could save in the long run by covering more preventative care up front.
"I mean we will decline to give reimbursements for you to go to a dietician to lose weight, but we'll pay the $30,000 for the foot amputation when you get diabetes," Obama said.
The Impact
So, what would all those changes mean for Ruth and her family?
Allowing Medicare to negotiate with the drug giants, as Obama proposes, would likely lower prices, and, in turn, Ruth's expenses. For example:
Medicare currently pays $82 a bottle for her heart drug, Diovan. That's nearly double the negotiated price the VA pays.
"What do you think about the fact that Medicare can't negotiate currently with the drug companies?" Cordes asked.
"I think it stinks! I think they should be able to," she said.
The McCain campaign says its proposal to charge wealthy Americans more for prescription drug coverage would only impact the richest 5 percent - not the Shindle family.
Welcome news to a woman whose premiums are rising - fast.
"In 2005, for example, she was paying $153 a month for her supplement for health care," Debbie said.
And in 2007, she was paying $176.50. Now this year the fee has gone up her premium has gone up to $184.25 a month.
When it comes to patient care the family worries that McCain's idea to pay for treatment with one lump sum, rather than per visit, would limit their treatment options.
And they like Obama's plan to pay for prevention.
"Get it before you're too sick to take care of it. So I would have to go with Obama on that," Donna said.
Whoever wins, experts say, the next president can't afford to wait until his second term to fix Medicare's finances.
Not with the first of 78 million baby boomers set to become eligible in the next two years.
© MMVIII, CBS Interactive Inc. All Rights Reserved.
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- All you racial bigots are obviously Conservatives and belonging to either the KKK or a Skinhead organization and I have little doubt you vote republican. How sad for you the new president will be Obama and the Democrats will have 60 seats in the senate to stop any problems the stupid republicans can cause. I read your garbage and just laugh at you.
Have a nice four years Morons. - Reply to this comment
- Everyone...Repubs and Crats...email the LA Times to release the tape...it is our civil duty to do this and their responsibility to release the tape. Take action...let''''s get control of the United States of America again and out of the mainstream media''s bias release of information
- Reply to this comment
- This country is pathetic. How can anyone with a brain vote for the anti-American anti-Consitution hypocrite Barack Obama. If anyone of you had a child who consistenly hung around extremely bad influences.... you would DEFINATELY NOT reward your child. Yet... you same idiots are willing to overlook the horrendous people Barack has accepted into his life both personally, politically, and spiritually because you don''''t like the economy and are too stupid to look past the political RHETORIC that has been spoken by every politician since the beginning of time... "I will bring Change"... are you f''n kidding me...???
I dare anyone of you Barack cool-aid drinking idiots.... to show me significant evidence that he has done ANYTHING in his brief political career to back up the CHANGES his mouth has been spouting off since the start of the primaries.
The guy is a fraud and the pied piper of lies... and so many stupid people in this country are willing to close their eyes and follow his music. Not suprised considering this country was stupid enough to LISTEN and then VOTE George W Bush into office TWICE!
NO experience managing an economony on any level, NO foriegn policy experience, and very questionable allegiances... so lets make him President! HAHAHAHA..... - Reply to this comment
- Grab one of your racist friends and fondle this:
Obama%u2019s patriotism is questionable. In an election, we naturally compare one candidate to another. One candidate doesn%u2019t wear a flag pin. One candidate doesn%u2019t hold his hand over his heart during the Pledge of Allegiance. One candidate has no military experience. One candidate%u2019s idea of foreign policy is to negotiate with enemies who wish to obliterate our existence over a cup of coffee. The role of the president should be filled by someone who loves our country, who values our history, and who has proven that he is ready to die to serve our country. The role of the First Lady should similarly be filled by someone who honors and respects the country her husband serves. It doesn%u2019t count when your patriotism begins just as your husband enters the presidential campaign. If Obama%u2019s friends don%u2019t derail his campaign, his own wife and life partner surely will. I understand Michelle prefers to wear the English saddle .....
Posted by TheMasses1
Sounded like a description of George W. Bush until you got to the part about Michelle preferring the English saddle. I''m pretty sure it was George on Blair. - Reply to this comment
- What did Obama do in his whole lifetime to merit the kind of medical care insuance for his daughters that he now has? He didn''t serve ONE DAY in the military service of this country; he didn''t even take the CHANCE he might make the sacrifice. He got elected Senator. Now he has great medical care insurance for his daughters. Michele is no different. She got the medical care insurance she had because she was a high priced lawyer (over $300,000 per year in "service." )WE provided that for them. Every working hour at every dismal job we ever had, they took our money right off the top, didn''t even give us a choice, a voice or a vote. They put our money in a "trust fund" and we "trusted" them to "fund" our health care. Imagine that. The rich and the privileged get taken care of, and now WE get dumped. I, for one, BELIEVE IN CHANGE!
- Reply to this comment
- Where is Obama''s "truth" squad when he''s spreading lies on TV about John MvVain Medicare plan.Go to JohnMcCain.com and read the truth,that has been fact checked by non=partisan firms.Obama is currently saying that McCain will reduce benefits and/or eligibilty.The FACTS ARE: John McCain believes that we can achieve savings without reducing benefite or eligibility.He has proposed common-sense reforms to put Medicare on the path to financial stability while still providing access to quality care.The refoems he presents are merely targeting waste,fraud and abuse.Isn''t everyone saying they want reform,cuttting wsteful spending and accountability?That''s what McCain''s plan will do.Obama wants to keep the wasteful spending,and add more on top of the problem by raising taxes.
- Reply to this comment
- Where is Obama''s "truth" squad when he''s spreading lies on TV about John MvVain Medicare plan.Go to JohnMcCain.com and read the truth,that has been fact checked by non=partisan firms.Obama is currently saying that McCain will reduce benefits and/or eligibilty.The FACTS ARE: John McCain believes that we can achieve savings without reducing benefite or eligibility.He has proposed common-sense reforms to put Medicare on the path to financial stability while still providing access to quality care.The refoems he presents are merely targeting waste,fraud and abuse.Isn''t everyone saying they want reform,cuttting wsteful spending and accountability?That''s what McCain''s plan will do.Obama wants to keep the wasteful spending,and add more on top of the problem by raising taxes.
- Reply to this comment
- Grab one of your racist friends and fondle this:
Obama%u2019s patriotism is questionable. In an election, we naturally compare one candidate to another. One candidate doesn%u2019t wear a flag pin. One candidate doesn%u2019t hold his hand over his heart during the Pledge of Allegiance. One candidate has no military experience. One candidate%u2019s idea of foreign policy is to negotiate with enemies who wish to obliterate our existence over a cup of coffee. The role of the president should be filled by someone who loves our country, who values our history, and who has proven that he is ready to die to serve our country. The role of the First Lady should similarly be filled by someone who honors and respects the country her husband serves. It doesn%u2019t count when your patriotism begins just as your husband enters the presidential campaign. If Obama%u2019s friends don%u2019t derail his campaign, his own wife and life partner surely will. I understand Michelle prefers to wear the English saddle .....
Posted by TheMasses1
Sounded like a description of George W. Bush until you got to the part about Michelle preferring the English saddle. I''m pretty sure it was George on Blair. - Reply to this comment
- Grab one of your racist friends and fondle this:
I understand Michelle prefers to wear the English saddle .....
Posted by TheMasses1 at
Who''s racist??
So how many wear flag pins made in China? Try to find one made here.
Once Obama didn''t put his hand over his heart once.
What military experience do Bush and Cheney have?
When you have a disagreement with someone--do you kill them without asking questions or do you sit down and discuss your differences?
McCains friends haven''t been anyone to write home about either!
Don''t understand the Michelle and English Saddle thing though---
You make no valid points.
Racist??? Speak for yourself. - Reply to this comment
- To all the Obama suppoters out there.Ayers held a fund raiser for Obama in his own home back in 1995 to get him in to public office. Now consider this,I am thinking about public office also, How many of you are going to have me at your house for a fund raiser unless you know me very well or we share the same veiws?
- Reply to this comment
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Posted by TheMasses1 at 11:36 AM
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As long as he is spending the tax money here, instead of giving it to a country that has an 80 billion dollar surpluss i have no problems with that....its so cute how the Cons make the argument that yeah we screwed up the country in the last eight years, but please give us another four....cute and sad.- Reply to this comment
- Oliva also has the freedom to respone. What''''s your point? Oliva is mean for giving him money? You are twisted man. godspeed...........
Posted by johnedwards6 at 11:33
Wonder what "good hearted" olivia''s going to do when Obama becomes president. - Reply to this comment
- Olivia4441 did a great injustice to her waiter--she personally took away his freedom of expression--all she did was reinforce to him that jerks still exist, as a waiter, he sees plenty of olivias in a day in one way or another.
I hope the homeless man needed a good meal rather than another drink or fix---if it was the latter, olivia is an enabler.
I voted for Obama, my grandson and his wife are voting for McCain---think I should skip the Christmas presents this year?? Naw, I''''m not that spiteful,they have their American right to vote for whom ever they please.
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Posted by liberalme at 11:29 AM : Oct 29, 2008
Oliva also has the freedom to respone. What''s your point? Oliva is mean for giving him money? You are twisted man. godspeed........... - Reply to this comment
- The uninformed and uneducated are terrified that Obama will take their money and "redistribute" to the poor. While, the eduated, informed MILLIONARES in California (including celebrities, who would have more to lose because they have more money), SUPPORT OBAMA, because they''ve LISTENED to his doctrine and are SMART enough to UNDERSTAND IT.
THEY are not "afraid that we are going to become "socialist"! They KNOW we''ve been lied to an r.a.p.e.d. for the past 8 years and want it to STOP! - Reply to this comment
- Reckon why it is every time I see the news reporting on some voter being denied their rights, it always seems to be a Demoturd??
Are you wibble bibby Demoturd so helpless you have to have big brother take care of you from cradle to grave??
It goes a long way in explaining what is required to be a Demoturd.
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Posted by AFactJack at 11:08 AM
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Simple....the Cons are all about supressing the Dem vote....doesn''t take a genius to realize that... - Reply to this comment
- Obama proposes a number of tax cuts for lower- and moderate-income people. According to the nonpartisan Tax Policy Center, by 2012 middle-income people (those in the middle one-fifth of all households) would get to keep an extra $2,200 per year in after-tax income on average under Obama than they do now. Under McCain, that figure would be $1,400. The top 1 percent of earners, on the other hand, would have to pay an average of $19,000 more in taxes under Obama, while under McCain they''d see their taxes cut by an average of $125,000.
This is allowing people in a lower tax bracket of (WORKING PEOPLE) to keep a bit more of their taxes--these people aren''t sitting home on welfare they are working--how the repukes love to twist things to suit their agenda!!
Olivia4441 did a great injustice to her waiter--she personally took away his freedom of expression--all she did was reinforce to him that jerks still exist, as a waiter, he sees plenty of olivias in a day in one way or another.
I hope the homeless man needed a good meal rather than another drink or fix---if it was the latter, olivia is an enabler.
I voted for Obama, my grandson and his wife are voting for McCain---think I should skip the Christmas presents this year?? Naw, I''m not that spiteful,they have their American right to vote for whom ever they please. - Reply to this comment
- i am joe the plumber
Posted by KathySun at 10:53 AM : Oct 29, 2008
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So you admit that you are uninformed and naive? - Reply to this comment
- The Cons also used that excuse when they asked people to vote for Bush.....guess our national debt has nothing to do with our children''''s futures too?
Posted by PTA-Mom-4-VP at 11:26 AM : Oct 29, 2008
You are absolutely correct. Nice to see a post from someone with a BRAIN and a MEMORY. - Reply to this comment
- More government is not the answer. Stop looking for short term fixes like Obama and and look long term like McCain. It''''''''s for our children''''''''s future.
Posted by mmstar20 at 11:02 AM : Oct 29, 2008
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The Cons also used that excuse when they asked people to vote for Bush.....guess our national debt has nothing to do with our children''s futures too? - Reply to this comment
- i am joe the plumber
Posted by KathySun at 10:53 AM : Oct 29, 2008
And you are just as confused and uninformed. - Reply to this comment
