THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE
~ Celebrating 25 Years of Advocacy for Older Americans ~

December 4, 2007

NEWS RELEASE

Seniors Nationwide Urge Senate to Reform Medicare Advantage

The National Committee to Preserve Social Security and Medicare (NCPSSM), joined by the Alliance for Retired Americans, delivered 48,000 petitions today signed by  National Committee members throughout the nation asking the Senate to eliminate or reduce billions in insurance industry  subsidies to private Medicare providers and to strengthen the traditional Medicare program.  

The Senate Finance Committee is considering legislation this week that could include cuts to billions of dollars in subsidies to private insurers.  These overpayments will cost the federal government $149 billion dollars over the next decade and cut two years from Medicare's solvency.  Seniors want Congress to reduce those subsidies to improve and strengthen Medicare for future generations.  Contrary to what the insurance industry claims, cutting industry subsidies is not the same as cutting Medicare.

“While the President chides Congress for ‘wasteful Washington spending', at the same time he and his allies continue to defend providing billions of dollars in subsidies to the insurance industry.  Taxpayers and seniors should not have to foot the bill for overpayments to an industry already seeing record profits thanks to the privatization of Medicare.  The Medicare Advantage program is the textbook definition of ‘wasteful Washington spending' and should be reformed“... Max Richtman , NCPSSM Executive Vice President

Medicare beneficiaries also waved $2 bills to symbolize the extra money they pay each month in Medicare premiums because of these industry subsidies.

“While each $2 bill may seem minor on its own, the total cost is significant.  And so is the total effect on seniors.  Each month, private insurance companies keep getting more, while seniors keep getting less”...Edward F. Coyle, Alliance for Retired Americans Executive Director.

Earlier this fall, National Committee members and supporters mailed 73,000 letters to Congress requesting Medicare improvements.  Several other petition drives and member surveys on Medicare are currently underway for delivery to Congress later this year or early 2008.