Private Medicare Costs Too Much – THAT’S Why The Payments Should Be Cut

November 18, 2009 at 10:14 pm 6 comments

If Republicans and “conservative” Democrats really want to save money, help taxpayers, and serve Medicare beneficiaries, they will cut the wasteful subsidies to private Medicare plans. Private Medicare plans cost taxpayers about 14% more than would be needed to cover the same services in the traditional, public Medicare program. Private plans should be paid the same rate as original Medicare; we simply can’t afford otherwise. The subsidies to private “Medicare Advantage” plans cost taxpayers about $10 billion a year!


Entry filed under: Medicare, Public vs. Private Health Coverage.

CMA’s Executive Director Participates in Healthcare Forum with the First Lady Connecticut’s Senators, Health Care Reform, and Lessons From Medicare

6 Comments Add your own

  • 1. Peter Schmidt  |  December 1, 2009 at 6:07 pm

    I agree that payments to Medicare Advantage plans should be cut.
    However, if they are cut back to 100 percent of the AAPCC, as they should be, many, if not most, plans will withdraw from Medicare. (They cannot compete with Medicare on a level playing field because their administrative costs are too high.) Most beneficiaries drop Medigap policies when they join these plans. The Congress needs to assure that if plans drop out of Medicare, beneficiaries will be able to purchase Medigap plans at an affordable cost.

    • 2. Judith Stein  |  December 1, 2009 at 10:29 pm

      Agreed! Beneficiaries and taxpayers would be better off if the money paid to private plans was used instead to fill the gaps in tradtional Medicare and / or to help pay for Medigap coverage.

  • 3. maurine  |  December 23, 2009 at 7:14 pm

    my ins droped my meds and there is no generic i can only
    take brand where do i go and what do id

    • 4. Judith Stein  |  January 12, 2010 at 2:36 pm

      Call here,(860)456-7790, and someone can tell you who to contact in your state.

  • 5. annfoer  |  January 2, 2010 at 3:32 am

    No one has ever proved that Medicate Advantage, with its free gyms and other freebies, has increased the life expectancy or health of its beneficiaries. It is just a means to give more money to Insurance providers!

    • 6. Judith Stein  |  January 12, 2010 at 2:35 pm

      Thank you for your important comment. We hope people understand this as they consider health reform and Medicare changes in the coming, final weeks of this debate.


Leave a Reply

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

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

Facebook photo

You are commenting using your Facebook 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
November 2009


%d bloggers like this: