Navigation Links
Extra payments to Medicare Advantage plans to total $11.4 billion in 2009
Date:5/3/2009

New York, NY, May 4, 2009Private Medicare Advantage (MA) plans will be paid $11.4 billion more in 2009 than what the same beneficiaries would have cost in the traditional Medicare fee-for-service program, according to a new report released today by The Commonwealth Fund. This new analysis, The Continuing Costs of Privatization: Extra Payments to Medicare Advantage Plans Jump to $11.4 Billion in 2009, estimates that since MA was enacted in 2004, $43 billion in extra payments have been made.

In the report, Brian Biles, professor of health policy at George Washington University and colleagues find that extra payments to MA plans will amount to an average of $1,138, or 13 percent over fee-for-service costs, for each of about 10 million Medicare beneficiaries enrolled in Medicare Advantage plans. The $11.4 billion in extra payments in 2009 represents a 34 percent increase over 2008 payments, which totaled $8.5 billion. According to authors, the steep one-year increase was due to the increase in payment rates and enrollment in the private MA plans.

The bulk of these extra payments were mandated by the Medicare Modernization Act of 2003, which was intended to expand the role of private plans in Medicare in an effort to reduce growth in Medicare spending. Since 2004, MA plan enrollment has increased from 4.8 million to the current 10 million.

"It is clear that private plans are continuing to substantially raise the cost of serving Medicare beneficiaries," said Commonwealth Fund president Karen Davis. "Modifying these payments in 2010 is an excellent first step, but policymakers should examine whether or not these plans are the best use of Medicare dollars for the beneficiaries they were designed to serve."

The Congressional Budget Office estimates that bringing MA payments in line with traditional fee-for-service Medicare would save $157 billion over the next 10 years. Recent steps taken by the Centers for Medicare and Medicaid Services that reduce the payments made to private MA plans in 2010 do not address the factors responsible for the $11.4 billion in extra payments, the authors say.

The authors note that funds saved by eliminating extra payments to private plans could be used for other purposes, such as offsetting the costs of Medicare policy improvementsincluding reducing the Part B premiums that Medicare beneficiaries pay or increasing eligibility for low-income subsidies in Medicare Part Dor offsetting part of the cost of expanding health insurance to the 47 million uninsured.

"Right now we are spending billions of dollars on extra payments for a limited group of Medicare beneficiaries." said Biles. "These plans haven't realized the cost savings they were initially intended to create, and the extra spending will continue to increase even with the new CMS payment policies in place in 2010. We have to ask ourselves if this is the best use of our health care dollars or if those dollars could be better spent improving Medicare benefits for all beneficiaries or expanding health insurance coverage."


'/>"/>

Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
Source:Eurekalert

Related medicine news :

1. Winner of 2009 CURE Magazine Extraordinary Healer Award Announced
2. $89 Million Proposed Class Action Settlement Provides Consumers and Insurers With Money Back for Celebrex and Bextra Purchases and Reimbursements
3. No Verdict Yet on Grape Seed Extract vs. Breast Cancer
4. Extra Pounds in Mid-Life Affect Later Mobility
5. KODAK 9000 3D Extraoral Imaging System Earns High Marks From Dental Professionals In Third Party Survey
6. Japan Treats First Extracranial Patients Using CyberKnife Radiosurgery
7. Rubbo Art of Energy Announces the Release of Their Free eBook Extraordinary Breath, to Celebrate the Start of Healthcare Reform
8. Seahorse XF96 Extracellular Flux Analyzer Wins Best New Product Award for DRUG DISCOVERY at 2009 Molecular Medicine Conference
9. The navel: A single, safe surgical access route for kidney extraction
10. Clinical Evidence Grows in Support of CyberKnife Treatment for Intracranial and Extracranial Tumors
11. Social Security Disability Insurance Recipients To Get Extra $250 By Summer
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/24/2017)... ... 2017 , ... As part of the nationwide Days of Remembrance effort led ... Holocaust and Nazi persecution, Center for Medicine after the Holocaust (CMATH) announced ... trip to Germany and Poland next week. , The Fourth Biennial CMATH Champions Trip ...
(Date:4/24/2017)... TX (PRWEB) , ... April 24, 2017 , ... The ... the glitterati, those unreal icons inhabiting the rarified air of pop and film stardom.(1) ... paparazzi and anyone snapping pictures: the smile. Grins now run the gamut from being ...
(Date:4/24/2017)... ... ... The California Dental Association Foundation’s two-day volunteer dental clinic, CDA Cares ... April 22-23 event at the San Mateo Event Center. , In addition to ... Cares educates the public and policymakers about the importance of good oral health and ...
(Date:4/24/2017)... ... ... Veteran Theresa James awoke to the sound of her newly ex-husband breaking ... James depicts every parent’s worst nightmare, when her three children were violently taken from ... throughout my divorce,” James said. “After the death of my children, I continued to ...
(Date:4/24/2017)... ... April 24, 2017 , ... ALP Nutrition®, ... supplements, announced its popular products are now available for purchase on StackedNutrition.com, a ... the use of premium natural ingredients in making all of its products. These ...
Breaking Medicine News(10 mins):
(Date:4/19/2017)...  Sorrento Therapeutics, Inc. (NASDAQ: SRNE ... new treatments for cancer and other unmet medical ... announced underwritten public offering of 23,625,084 shares of ... of $2.00 per share, before deducting underwriting discounts ... Sorrento.  The net proceeds to Sorrento from this ...
(Date:4/19/2017)... , April 19, 2017  New research provides evidence that ... Parkinson,s, according to a study released today that will be ... Meeting in Boston , April 22 ... the treatment of Parkinson,s disease, the oral drug levodopa has ... and longevity. But as the disease progresses, the effects of ...
(Date:4/19/2017)... 19, 2017  SARES•REGIS Group leased the first ... at Conejo Spectrum Business Park in ... Biotherapeutics, Inc. , a biopharmaceutical company developing meaningful ... that have been underserved by scientific innovation, with ... cancer, autoimmune and infectious disease. Before ...
Breaking Medicine Technology: