CMA Health Policy Blog

Extend the Life of Medicare: Pass Health Care Reform Now

March 3, 2010 at 9:13 pm meshepard Leave a comment

If you have Medicare and want to keep it, you should be in favor of health care reform.

Recently the non-partisan Medicare Advisory Payment Commission (MedPAC) released its biannual report to Congress, which for the fifth consecutive year advised Congress to equalize reimbursements to Medicare Advantage plans with the traditional Medicare fee-for-service program. 

According to non-partisan Congressional Budget Office (CBO) estimates, equalizing payments between Medicare Advantage programs and the traditional Medicare programs will generate $170 billion in savings over the next ten years.

MedPAC’s report concluded that the “Commission has consistently supported the concept of financial neutrality between payment rates for the fee-for-service program and private plans.”  Under the current reimbursement system, Medicare Advantage plans are reimbursed on average 14 percent more than traditional Medicare plans.  These extra costs are born by beneficiaries in the traditional Medicare program and all taxpayers.

The health care reform bills passed by both the House and the Senate, and the proposals by President Obama, would reduce wasteful Medicare Advantage spending – saving money for Medicare beneficiaries and taxpayers alike, and extending the solvency of the Medicare program.  We urge Congress to pass health care reform now!

Entry filed under: Health Care Reform, Medicare.