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TOPIC: Obama Targets Medicare Advantage Plans (WSJ 8/26/09)


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Obama Targets Medicare Advantage Plans (WSJ 8/26/09)
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FYI for those who have a Medicare Advantage plan or a relative who does:



Two weeks ago, White House Senior Adviser David Axelrod said in a now legendary "viral" email that, "It's a myth that health insurance reform would be financed by cutting Medicare benefits." This was sent out the day before Mr. Obama told a Montana town hall that he'd pay for health-care reform by "eliminating . . . about $177 billion over 10 years" for "what's called Medicare Advantage." And it was two days before Mr. Obama told a Colorado town hall he'd cover "two-thirds" of the "roughly $900 billion" of his plan's cost by "eliminating waste," again citing Medicare Advantage.

Who's right? As a former senior adviser, I can tell you who: the president. What's more, according to a White House fact sheet titled "Paying for Health Care Reform," Mr. Axelrod was misleading his readers. It notes the administration would cut $622 billion from Medicare and Medicaid, with a big chunk coming from Medicare Advantage, to pay for overhauling health care. Mr. Obama heralded these cuts as "common sense" in his June 13 radio address.

Medicare Advantage was enacted in 2003 to allow seniors to use Medicare funds to buy private insurance plans that fit their needs and their budgets. They get better care and better value for their money.

Medicare Advantage also has built-in incentives to encourage insurers to offer lower costs and better benefits. It's a program that puts patients in charge, not the government, which is why seniors like it and probably why the administration hates it.

Already, an estimated 10.2 million seniors—one out of five in America—have enrolled in Medicare Advantage. Mr. Obama is proposing to cut the program by nearly 20% and thus reduce the amount of money each will have to buy insurance. This will likely force most of them to lose the insurance they have now. Yet Mr. Obama promised in late July in New Hampshire that, "if you like your health-care plan, you can keep your health-care plan."

There are roughly 23,400 seniors on average in a congressional district who have Medicare Advantage, but who face losing it if Mr. Obama has his way. That's enough votes to tip most competitive House and Senate races.


It's still too early to count Mr. Obama out. His team will be back in Washington next week. They'll work on their messaging and have more than $100 million—much of it from pharmaceutical companies—to spend on ads bludgeoning reluctant Democrats and energized Republicans.

The White House will exert enormous pressure—and in the spirit of Chicago-style politics, employ threats when necessary—with Senate and House Democrats. The health-care battle, already intense, will get more so in the months ahead. ObamaCare is unpopular, but it is far from defeated.

http://online.wsj.com/article/SB10001424052970203706604574374584177632694.html



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Thanks for this I have to check my mother's insurance and see what she has.



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silver

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This will affect my husband. He does have a Medicare advantage plan. Bet he'll have to pay for a supplement if this monstrous bill goes through...

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