Senators oppose Medicare Advantage cuts
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February 19, 2014 |
A bipartisan coalition of forty senators, led by
Mike Crapo (R-Idaho) and Charles Schumer (D-New
York), have written the Centers for Medicare and
Medicaid Services (CMS) to express concern with
additional cuts to Medicare Advantage in 2015.
In the letter, the senators state, “We are
strongly committed to preserving the high
quality health plan choices and benefits that
our constituents receive through the Medicare
Advantage (MA) program. Given the impact that
payment policies could have on our constituents,
we ask that you prioritize beneficiaries’
experience and minimize disruption in
maintaining payment levels for 2015.
Approximately 15 million seniors and individuals
with disabilities—accounting for 28 percent of
all Medicare beneficiaries—are currently
enrolled in MA plans, which tend to offer more
flexible services and benefits than traditional
Medicare.”
“In rural areas, such as much of Idaho, MA plans
are a significant part of the insurance coverage
network for Medicare patients,” said Crapo. “MA
plans have already received significant
reductions due to the president’s health care
law, leading some providers to cancel plans.
Like all health care consumers, beneficiaries
are looking for consistency and predictability
to ensure continued access to high quality
health care. MA has been a successful
competitive option for Idaho seniors, and it
should continue without further reductions.”
CMS proposed in early 2013 a further 2.3 percent
reduction in MA payments. Last year, Crapo and
Schumer contacted CMS opposing the proposal,
which was later replaced with a 3.3 percent
growth factor increase in the final rule.
However, despite the positive growth rate
included in the final rule, the payment cuts and
new health insurance tax included in the
president’s health care law, combined with other
changes outlined in the final rate notice,
resulted in MA plans facing a decrease in
payments of approximately 6 percent in 2014.
Over the next two years, about $45.5 billion of
the president’s health care law cuts to MA will
go into effect. These cuts, along with
additional proposed cuts from CMS, could result
in MA plans being cancelled for seniors across
the country. |
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