The Medicare program is on the verge of major change. The proof of the valu
e of reforms wilt not rest in how well the program meets the needs of the h
ealthy and wealthy, but rather in whether they preserve or improve upon pro
tections for those who would not be well served by an unregulated private s
ector-persons with low incomes and/or substantial health problems. This pap
er examines four key issues: Which beneficiaries will likely be best served
by a system oriented around choice; what role traditional Medicare should
continue to play and what changes will be needed; what protections are nece
ssary for persons with low and moderate incomes; and how these reforms coul
d be incorporated into broader changes to make Medicare more viable over ti
me.