THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ 4 Million Seniors ~ One Voice ~No Privatization ~

June 7 , 2007

News Release

Seniors Pay More, Get Less While Insurers Collect Billions in Subsidies

New National Committee Analysis of Medicare Advantage Plans
and the Privatization of Medicare Released Today

 Seniors enrolled in Medicare are feeling the effects of privatization legislation, called the Medicare Modernization Act, passed four years ago. An analysis of how private Medicare Advantage plans erode traditional Medicare is detailed in a new National Committee to Preserve Social Security and Medicare Viewpoint entitled: "Attack on Medicare: Private Health Plan Subsidies Windfall for Corporate America". This report finds:

•  Even though they promised better benefits at lower costs than traditional Medicare; private insurers are actually being paid about $1,000 more for each beneficiary covered by private plans.

•  These government subsidies will cost the federal government $149 billion dollars over the next decade. These overpayments will also cut two years from Medicare's solvency.

•  Not all of these subsidy dollars are being used to improve benefits. A significant portion goes straight to insurers rather than seniors. Meanwhile, every Medicare beneficiary (even those not in private plans) is paying $24 a year in higher premiums to pay for these industry subsidies, and that number will continue to rise.

National Committee President/CEO, Barbara Kennelly, joined other Medicare advocates on Capitol Hill today urging Congress to repeal these unfair corporate overpayments and rollback the privatization of Medicare before it's too late:

"Rome is already burning. Our members nationwide are paying higher premiums, facing larger out-of-pocket costs and being aggressively sold private plans which often do not even provide the coverage they need. The administration's goal is clear…to stack the deck in favor of a Medicare program run by private insurance companies allowing the destruction of the traditional program seniors have depended on for decades. Congress must level the playing field and can start by eliminating these corporate giveaways."

The National Committee Medicare Advantage Viewpoint can be found online at: http://www.ncpssm.org/news/archive/vp_medicare_advantage/

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