WASHINGTON – A new report highlights problems that leave seniors paying high costs for their healthcare and outlines how health insurance reform will strengthen Medicare and protect coverage for seniors.

Health and Human Services Secretary Kathleen Sebelius released the report, America’s Seniors and Health Insurance Reform: Protecting Coverage and Strengthening Medicare.

“Senior citizens have seen their premiums and out-of-pocket drug costs rise and without reform, many seniors on Medicare could lose access to the doctor they know and trust,” Sebelius said. “Health insurance reform will protect the coverage seniors depend on, improve the quality of care and help make Medicare strong.”

A typical older couple in traditional Medicare will pay almost $90 next year on average to subsidize private insurance companies who are not providing their health benefits. Health insurance reform is expected to eliminate these overpayments and cut the drug costs that they have to bear in the “doughnut hole” by 50 percent.

Medicare is scheduled to reduce its fees next year by 21 percent next year. According to a recent survey by the American Medical Association, if Medicare payments are cut by even half that amount, 60 percent of physicians report that they will reduce the number of new Medicare patients they will treat, and 40 percent will reduce the number of established Medicare patients they treat.

The Medicare Hospital Insurance Trust Fund is projected to be exhausted in eight years, sometime during 2017. Health insurance reform is expected to reduce overpayments to private plans and cut down on fraud and abuse to lower premiums for all seniors and extend the life of the Medicare trust fund by five years.

“The status quo is unsustainable and unacceptable for seniors,” said Sebelius. “Health insurance reform will ensure our seniors have the quality, affordable coverage they deserve."