THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ Protecting the Health and Economic Future of Older Americans ~

September 15, 2009

NEWS RELEASE

Medicare Advantage Plans Undermine Traditional Medicare and Shortchange Beneficiaries

National Seniors' Advocate Responds to Insurance Industry's Efforts to Protect Billions in Government Subsidies

"For decades the insurance industry has told Congress it could provide better healthcare for seniors while saving Medicare money.  However, it has never happened.  But every year or so we do see a new batch of reports from the health insurance lobby defending the billions of dollars in wasteful subsidies going to insurers providing Medicare Advantage plans. These reports never address the core issue: Why should the government pay private industry 14% more to serve beneficiaries in Medicare when that same money could have been used to improve coverage to all Medicare beneficiaries, not the 20% enrolled in private plans?

Already, $44 billion dollars in government subsidies have gone to private Medicare Advantage insurers and $169 billion will be spent in subsidies over a decade. Every Medicare beneficiary (even those not in private plans) is paying higher premiums to cover these massive overpayments while also bringing the Medicare Trust Fund even closer to insolvency.  Rather than promoting improved care for a small group of Medicare beneficiaries, it's time we focus on improving care for all seniors in Medicare.  The best way to do that is to support meaningful health care reform system wide and in Medicare.  Getting rid of these outrageous insurance industry subsidies is a good start. "... Barbara B. Kennelly, President/CEO

Media Inquiries to:
Pamela Causey 202-216-8378/202-236-2123
Kim Wright 202-216-8414
www.ncpssm.org