Medicare Advantage: Wrong way to spend $54 billion

Legislation must be passed that eliminates Medicare Advantage insurer subsidies as a means to sustain access to care for all seniors.

Editorial. Nov. 5, 2007.

America's seniors are about to find out that they are going to pay more and, in return, can expect less access to care.

The Centers for Medicare & Medicaid Services recently announced that next year's Medicare Part B premium will go up 3.1%. That's the smallest percentage increase in seven years, yet it's hardly a bargain. The increase is a result of payments to Medicare Advantage plans -- used by only one in five seniors -- in excess of what Medicare pays anybody else.

Meanwhile, many more seniors could well be affected by physician pay that faces a staggering cut, currently estimated at about 10% for 2008, and 15% through 2009. It's no surprise that an AMA online survey of nearly 9,000 physicians, released in June, reports that about 60% of doctors say the cut will force them into the position, at the least, of having to limit the number of new Medicare patients they take.

It is time for Congress to look at Medicare Advantage with clear eyes. Congress needs to level the playing field between traditional Medicare and private Medicare plans by eliminating excess payments to Medicare Advantage. The $54 billion saved would be more than enough to offset eliminating the two-year cut in physician reimbursement, as well as an update in payments to reflect increasing physician costs -- all while limiting premium increases for seniors.