Medicare Advocacy Groups Join to Blast CMS for
Promoting Private Advantage Plans
Organizations says it is last-ditch effort to
privatize Medicare by Bush administration
Jan. 12, 2009 Some of the leading advocates for
Medicare beneficiaries have joined together to condemn actions by the
Centers for Medicare & Medicaid Services, which they think are designed
to assure continued leniency in the oversight of private plans for at
least another year and as a last-ditch effort to promote private
Medicare Advantage plans.
The ire of the groups was created by the release by
CMS last week of the Medicare Advantage/Prescription Drug Plan Call
Letter.
The Call Letter, which provides instructions to the
private insurance companies that want to contract with Medicare to
provide drug and health coverage in 2010, was released two weeks earlier
than last year, and two months earlier than the previous year.
"The draft Call Letter issued today is another
example of how CMS has failed to properly oversee private Medicare plans
that receive billions of dollars above traditional Medicare without
providing the extra benefits they tout," Judith Stein, Executive
Director of the Center for Medicare Advocacy says.
"For example, the CMS Call Letter does not require
private Medicare plans to coordinate care and sets no standards for
those that purport to do so."
Paul Precht, Director for Policy and
Communications at the Medicare Rights Center explains further, "Advocacy
groups have asked CMS to strengthen the Call Letter admonition regarding
discriminating against beneficiaries with greater health care needs by
charging higher cost sharing for services such as home health care,
chemotherapy and durable medical equipment. Yet this Call Letter fails
to address the problem, even though discriminatory pricing for more
costly services continues."
MedPAC and other organizations have determined that
Medicare Advantage plans are paid, on average, 14% more than the same
services would have cost under traditional Medicare.
These extra payments, plus leniency in how the
money is allocated and benefits are provided, have resulted in increased
participation by private health plans in the Medicare program without
any proof that they provide better health care.
"We are dismayed that the current administration of
CMS has failed to issue a Call Letter that protects beneficiaries and
taxpayers by describing in detail what is expected by private Medicare
plans," says Kevin Prindiville, staff attorney with the National Senior
Citizens Law Center.
"We ask the incoming administrator of CMS to
rescind the current Call Letter and issue a new document that
demonstrates that CMS will exercise appropriate oversight over private
insurance plans."
Jan. 12, 2009 Some of the leading advocates for
Medicare beneficiaries have joined together to condemn actions by the
Centers for Medicare & Medicaid Services, which they think are designed
to assure continued leniency in the oversight of private plans for at
least another year and as a last-ditch effort to promote private
Medicare Advantage plans.