Medicare, which supplies health insurance for nearly 40 million Americans, faces serious long term financing challenges. According to the latest government forecasts, the Medicare trust fund, which pays for hospital coverage, is scheduled to go broke by 2015. The Medicare Commission is comprised of 17 members, including eight Democrats and eight Republicans.
Beneficiaries are able to choose from a variety of health care options.
Under the Breaux-Thomas plan, retirees could choose from a menu of health insurance policies and receive a subsidy to help cover the cost. More expensive plans would require participants to pay more out of pocket expenses. The current government-run system would compete with the private health plans, which would have to offer similar coverage. The plan would not, however, impose a means test to require wealthier seniors to pay more for Medicare coverage. One of the most controversial issues taken up by the Medicare Commission involved prescription drug coverage.