MedicareMedia Relations and Communications.


The real policy and political objectives behind the Bush Medicare law

Analysis reveals what the White House is trying to gain - and it's not better benefits for working families

Summer 2004

See also: Bush's credibility gap on Medicare law


Bush Medicare policy objectives

  • Give big corporations flexibility to get out of the business of providing employee healthcare benefits and - at the same time - lift the financial weight of health insurance contributions off of private industry.
  • Stagger implementation of law over several years so politicians and policymakers and seniors cannot fully see how the new structure works. This policy/political tactic works to diffuse opposition to new rules, regulations, and laws.
  • Make individuals primarily responsible for financing their own healthcare - not private businesses.
  • Health Care Savings Accounts
  • Privatization - end Medicare's guaranteed benefits
  • "Starve the beast" by ending all entitlements and de-coupling future taxpayer liabilities to pay for entitlements.

Bush Medicare political objectives

  • Ideological trend is to increase role of private sector in delivering government services, such as healthcare and prescription drugs.
  • Ease pressure on HMOs and the drug industry for health care and drug price controls. At the same time, don't financially harm private sector and political allies by enactment of Medicare Law.
  • Use momentum of new Medicare Law to press political fight to privatize Social Security System.
  • Remove Medicare prescription drug issue from political debate for the 2004 Election, while at the same time claiming major policy victory.

See also: President Bush's credibility gap

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