Encore: More About the Costs of Private Medicare

May 4, 2009 at 6:01 pm Leave a comment

Once again we hear that private Medicare, euphemistically known as “Medicare Advantage,” costs billions of dollars more than the traditional public program. A report issued by the Commonwealth Fund on May 4th finds that the private plan model is draining Medicare and taxpayers – and providing little in exchange. This nonsense must end as soon as possible. Why, with all we always hear about Medicare fraud, do these outrageous subsidies continue?
And please, remind policy makers not to repeat this unaffordable waste in Health Care Reform!

____________________________________

Medicare Advantage plans will receive $11.4 billion extra: report
By Rebecca Vesely
Posted: May 4, 2009 – 5:59 am EDT

Medicare Advantage plans this year will receive $11.4 billion in extra payments above the cost of traditional fee-for-service Medicare, a 34% increase over 2008, according to a report released by the Commonwealth Fund.

Since Medicare Advantage plans became available in 2004, the federal government has made $43 billion in supplemental payments to private health insurers administering these plans, according to the study by Brian Biles, professor of health policy at George Washington University, and colleagues. Extra payments this year averaged $1,138 per member, or 13% above Medicare fee-for-service costs, for the total 10 million Medicare Advantage members.
The 34% year-over-year increase was because of higher payment rates and increasing enrollment in Medicare Advantage plans, according to the study, which used Medicare and Commonwealth Fund data. “We have to ask ourselves whether this is the best use of our healthcare dollars,” Biles said in a written statement.
Visit modernhealthcare.com/reprints for additional information.

Entry filed under: Uncategorized.

Public Support for a Public Plan Option The Cart Before The Horse?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Subscribe to the comments via RSS Feed


Health Policy Expertise

We provide effective, innovative opportunities to impact federal Medicare and health care policies and legislation in order to advance fair access to Medicare and quality health care.

Judith A. Stein, Executive Director

Contact us by email
for a free consultation,
Or call at (202) 293-5760.
Se habla español
May 2009
M T W T F S S
« Apr   Jun »
 123
45678910
11121314151617
18192021222324
25262728293031

Feeds


%d bloggers like this: