Medicare collapse: Without replacement insurance, Congress must find new way to save

In a new twist to an old story, a bill would change city law to allow the Adams administration to begin paying insurance premiums to retirees who choose not to move in. the new Medicare Advantage plan appears to be dead. Adams will probably try to scrap the original Medicare program to leave the new one standing alone, though it’s a poor solution to let the programs coexist.

Well, if the proposal is very bad for the members of the Council, they should explain what exactly is their plan to replenish the Health Insurance Stabilization Fund. Remember that the $600 million in annual savings that Medicare Advantage must receive is reinvested in the fund, which itself serves several important purposes, including dental, vision and prescription coverage. the medicine for the workers in the city now.

This fund is not well managed, and is burning through cash faster than it can be replenished even if there is no mistaking the idea of ​​using it as a fund for unrelated purposes such as salary increases. , which is close to being unable to pay. This is a difficult situation that is obvious and was specifically warned by the Citizens’ Finance Commission back in 2011.

Currently, the city is facing an uncertain financial picture, and while there are additional ways for the mayor to find savings, such as restricting overtime, it is not possible protest if the cost reduction he is doing is blocked by a Council that is not in a hurry to offer its own ideas. At a time when the city is facing problems in attracting and retaining talent, funding is designed to support affordable access to medical care – one of the benefits that attracts people to public services – seems like a bad idea.

As the budget negotiations get under way, it’s not about new ways to spend, but how the City Council can put ideas on the table. to ensure the maintenance of the bond and the overall city budget?

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