Deficit-reduction proposals to change the structure of Medicare would increase costs for most current beneficiaries, a new study has found. Several deficit-reduction committees have suggested changing the federal health-care program for seniors to combine the hospital- and doctor-services deductibles that participants currently pay separately. In this system, seniors could have a $550 annual deductible, and be required to pay 20% toward all services up to a $5,550 annual limit. But the change would mean that around three quarters of current beneficiaries would pay more — on average around $180 a year more — according to models created by the nonpartisan Kaiser Family Foundation. About 5% of

current beneficiaries who use hospital services most frequently would see a significant decrease in the amount they have to pay — around $1,570 a year. The rest of the beneficiaries wouldn’t experience any change, the study found. You can expect the report to complicate deficit reduction debates on Capitol Hill. The seniors group AARP today delivered petitions with 6.5 million signatures telling members of Congress to oppose any budget deal that cuts Social Security and Medicare benefits. “Instead of cutting the benefits I worked for, Congress should be cutting waste and closing tax loopholes,” the petition reads.

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Medicare Costs: More or Less?