‘New Danger to Medicare System

With reference to the article on Medicare by the Feldsteins , I don’t know whether it is sloppy writing or ignorance, but they have misstated the case. Several times in this article they say Medicare pays 80% of the doctor’s bills and either the patient or supplementary insurance pays the other 20%.

The fact is Medicare only pays 80% of the amount they approve. There is usually a disparity between the doctor’s bill and the approved amount. This is especially true in the case of anesthesiologists, where Medicare’s average amount approved is only about 50% of the doctor’s bill.

Supplementary insurance that pays the total difference between what Medicare pays and the doctor’s bill carries a very high premium. Under the present system the patient frequently has to pay a great deal. Each year it gets worse and each year the premiums for Medicare and for supplementary insurance go up.

The greatest threat to the elderly who can afford to pay a part of their medical bills is the catastrophic illness, and this problem has yet to be adequately handled.

At present Medicare covers the hospitalization cost pretty well. It is long-term nursing and convalescent care that can wipe out the retiree’s assets, leaving the surviving spouse destitute. Economists and actuaries should be able to work out a premium which, when added to the monthly Medicare premium, would take care of that problem. I hope Congress will address itself to that aspect of senior care.

ALEXANDER R. BRADIE

Laguna Hills