Clinton Plan To Keep Medicare Trust Fund Afloat

US President Bill Clinton has decided not to propose any increases incosts for Medicare beneficiaries, according to Administration officials, but will instead try to cut back payments to hospitals, doctors and others who provide health care to the elderly.

After their support for similar proposals during the last Congress produced major criticisms from the Democrats, Congressional Republicans have indicated that they are unlikely to ask for any increase in premiums or other charges for beneficiaries.

However, according to a report in the New York Times, another battle is currently looming over Pres Clinton's plan to help keep the Medicare trust fund afloat by shifting the cost of home health care, which is the fastest-growing component of Medicare, from one account to another. Under the proposal, most of the cost of home health care for the elderly and disabled would shift from the Hospital Insurance Trust Fund to a separate Medicare account, with unlimited access to general revenue.