http://blog.aflcio.org/2008/02/28/gao-private-medicare-plans-a-bad-deal-for-seniors/by James Parks, Feb 28, 2008
Supporters of the Bush administration’s Medicare reform have touted private plans as being a big bargain for seniors. But the truth is that the private plans, known as Medicare Advantage, cost seniors more, congressional investigators say.
The New York Times reports today that a study by the Government Accountability Office (GAO) found many people in private Medicare plans face higher costs for home health care, nursing homes and some hospital stays than the traditional government-run Medicare program. In fact, the report shows the government will spend an estimated $54 billion in extra costs for Medicare Advantage beneficiaries from 2009 through 2012.
About one in five of the 44 million Medicare beneficiaries—9 million people—are in the private Medicare Advantage plans.
Edward Coyle, executive director of the Alliance for Retired Americans, says the 3.5 million-member retiree organization has heard “countless stories from seniors about how their Medicare Advantage programs have ultimately cost them more or failed them in their time of need.”
It has already been documented that Medicare Advantage plans cost taxpayers 12 percent more than traditional Medicare and that all Medicare beneficiaries have had to foot the bill, paying an additional $2 on top of their already rising premiums to subsidize these private insurance companies.
Even though private insurers claim they protect Medicare beneficiaries against high out-of-pocket costs by setting annual limits, the GAO found thousands of Medicare Advantage recipients were in plans that are projecting higher costs for home health services and inpatient services. On top of those increases, many of the annual cost limits don’t include some cancer drugs, some mental health services and home health care expenses.
FULL story at link.