Sen. John Barasso fibs about Medicare Advantage

Sen. John Barasso

Rightardia follows MSNBC during the day and heard Sen. John Barasso (R-Wy), a medical doctor,  said today that Democrats were eliminating Medicare Advantage. Barasso said this on the Dillion Radigan show.

This is untrue. President Obama and the House want to cut federal Medicare Advantage subsidies to the insurance industry that will affect profits. This Bush era program was supposed to be the GOP 'private option' for Medicare, but it is heavily subsidized by the federal government. There are no government plans to disband Medicare Advantage.

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Mythbuster: ‘Health Insurance Reform Will Eliminate Medicare Advantage Plans’

Medicare Advantage was created during the Bush Administration as a private insurance option to Medicare recipients. The program is subsidised by the federal government. Medicare Advantage covers 19 per cent of Medicare beneficiaries. If you want a detailed overview of this program, see http://en.wikipedia.org/wiki/Medicare_(United_States)#Part_C:_Medicare_Advantage_plans

The House wants to cut some of the federal subsidies which will make Medicare Advantage less profitable for the health care industry.

Health insurance reform opponents continue to spread myths about America’s Affordable Health Choices Act, including saying that health reform will eliminate Medicare Advantage plans. America’s Affordable Health Choices Act continues Medicare Advantage plans, but eliminates wasteful taxpayers’ overpayments that increase private insurance company profits, not patient care.

The top five Medicare Advantage myths:

MYTH: Medicare Advantage plans run by private insurance companies have been able to provide better value to U.S. taxpayers than traditional Medicare.

FACT: According to the nonpartisan Medicare Payment Advisory Commission, US taxpayers pay 14 percent more on average to private Medicare Advantage plans to cover Medicare beneficiaries than it would cost traditional Medicare to cover them.

These overpayments to private insurers were created in the Medicare Modernization Act, which the Republican-controlled Congress passed in 2003 and President George W. Bush signed into law.

When the Medicare Advantage program was created, insurance companies said that they would offer coverage for less than it was costing the government under traditional Medicare to provide the same services. Today, this promise has been broken and the taxpayers are paying the price – these Medicare Advantage plans are receiving 14 percent more.

On average, this giveaway to private insurers costs an extra $1,000 per enrolee. This adds up to an extra $12 billion a year—and that cost is passed on to all Medicare beneficiaries.
The nonpartisan Medicare Payment Advisory Commission has recommended phasing out these overpayments to Medicare Advantage – which is what the America’s Affordable Health Choices Act does.

MYTH: The overpayments to private Medicare Advantage plans mean better coverage for seniors.

FACT: Very little of the extra money going to private plans under Medicare Advantage goes to beneficiaries. Most of these taxpayer funds are used to pad the profit margins of private insurers.

According to a study by the Robert Wood Johnson Foundation, only 14 cents for every extra dollar given to Medicare Advantage plans end up translating into additional benefits. The other 86 cents goes into the pockets of the insurance companies.

The independent Medicare Payment Advisory Commission notes that the quality of care of traditional Medicare users and MA users are fairly similar — while MA users actually reported more problems accessing specialists.

MYTH: The current system of Medicare Advantage plans, despite the overpayments, is a good investment for everyone – including America’s seniors.

FACT: Everyone pays the price for these overpayments – including the 77 percent of Medicare beneficiaries who are enrolled in traditional Medicare. According to the Chief Actuary for the Medicare program, seniors in traditional Medicare pay higher premiums to subsidize Medicare Advantage plans – a typical couple paying an additional $90 a year.

The Chief Actuary has also stated that the overpayments to the Medicare Advantage program speeds up the depletion of the Medicare trust fund by 18 months and threatens the long-term solvency of Medicare.

MYTH: Enactment of the House health insurance reform bill will mean the elimination of private Medicare Advantage plans.

FACT: The House health insurance reform bill does not eliminate Medicare Advantage plans – instead, it simply phases out the overpayments going to these plans. The Congressional Budget Office projects that most private Medicare Advantage plans would continue to operate, once the current overpayments are phased out.
Under the House bill, Medicare Advantage plans that are able to operate efficiently and provide extra value to their enrollees through care coordination will continue to flourish.

MYTH: Enactment of the House health insurance reform bill will lead to worse health care coverage for Medicare Advantage enrollees.

FACT: As noted above, most of the extra money going to private plans under Medicare Advantage – which the House bill phases out – does not go to seniors for additional benefits. According to the study by the Robert Wood Johnson Foundation, 86 percent of this extra money simply goes into the pockets of the insurance companies. Hence, the phasing out of these overpayments will mostly impact insurers’ extra profits – and not seniors.

Additionally, the House bill makes reforms to Medicare Advantage that will improve the coverage of care for seniors enrolled in those plans. Currently, some Medicare Advantage plans offer lower cost-sharing for drugs and vision care but higher cost-sharing for services such as hospitalizations and home health services. As a result, seniors can end up spending more out-of-pocket under a Medicare Advantage plan, not less.

The House bill contains key provisions that limit cost-sharing requirements in Medicare Advantage plans to the amount charged for the same services in traditional Medicare coverage – which can end up saving seniors enrolled in certain Medicare Advantage plans thousands of dollars.

source: Nancy Pelosi's blog: The Gavel

Posted in Consumer Protections, Affordable Health Care, Correcting the Record 

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RNC trying to mislead seniors

Republicans are calling for a Seniors’ Health Care Bill Of Rights that will do nothing because the GOP has little power in the House and Senate:

• PROTECT MEDICARE AND NOT CUT IT IN THE NAME OF HEALTH CARE REFORM: President Obama and Congressional Democrats are promoting a government-run health care experiment that will cut over $500 billion from Medicare to be used to pay for their plan. Medicare should not be raided to pay for another entitlement.

The GOP said the same thing about Medicare and hired Ronald Reagan to oppose it. The Obama administration wants to cut excessive payments to the insurance industry that do not affect Medicare services to seniors.

• PROHIBIT GOVERNMENT FROM GETTING BETWEEN SENIORS AND THEIR DOCTORS: The Democrats’ government-run health care experiment will give patients less power to control their own medical decisions, and create government boards that would decide what treatments would or wouldn’t be funded. Republicans believe in patient-centered reforms that put the priorities of seniors before government.

The Affordable Health Care Act of 2009 does not affect the Medicare program. This is simply GOP scare tactics.

• PROHIBIT EFFORTS TO RATION HEALTH CARE BASED ON AGE: The Democrats’ government-run health care experiment would set up a "comparative effectiveness research commission" where health care treatment decisions could be limited based on a patient’s age. Republicans believe that health care decisions are best left up to seniors and their doctors.

Ditto-- The Affordable Health Care Act of 2009 does not affect the Medicare program. This is simply GOP scare tactics.

• PREVENT GOVERNMENT FROM INTERFERING WITH END-OF-LIFE CARE DISCUSSIONS: The Democrats’ government-run health care experiment would have seniors meet with a doctor to discuss end-of-life care that could mean limiting treatment. Republicans believe that government should not interfere with end-of-life care discussions between a patient and a doctor.

George W. Bush has already signed legislation into law that would allow for Medicare end-of-life discussions with seniors. Again, more GOP scare tactics.

• ENSURE SENIORS CAN KEEP THEIR CURRENT COVERAGE: As Democrats continue to propose steep cuts to Medicare in order to pay for their government-run health care experiment, these cuts threaten millions of seniors with being forced from their current Medicare Advantage plans. Republicans believe that seniors should not be targeted by a government-run health care bill and forced out of their current Medicare coverage.

Double Ditto-- The Affordable Health Care Act of 2009 does not affect the Medicare program. This is simply GOP scare tactics.

• PROTECT VETERANS BY PRESERVING TRICARE AND OTHER BENEFIT PROGRAMS FOR MILITARY FAMILIES: Democrats recently proposed raising veterans’ costs for the Tricare For Life program that many veterans rely on for treatment. Republicans oppose increasing the burden on our veterans and believe America should honor our promises to them.

The GOP is confused because Tricare for Life simply provides funding to Medicare once a veteran reaches age 65. At age 65 the military retiree becomes a Medicare recipient.

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