Thursday, March 04, 2004
Move to privatize Medicare already paying dividends to consumers
[Conrad F. Meier, "Medicare HMO Premiums Plummet," Health Care News, The Heartland Institute, 1 March 2004.]
While certainly controversial, the latest Medicare reform effort does attempt to encourage private provision of Medicare. For consumers, the federal government's efforts are paying off:
Millions of seniors enrolled in private-sector Medicare HMOs are getting a big surprise: lower health insurance premiums and increased benefits. HMOs for the elderly are offering substantial rate cuts and benefit increases in response to a $500 million boost from the federal government this year.
The new Medicare law signed by President George W. Bush in December 2003 not only created a prescription drug benefit but also gave private-sector health care plans a larger role in the program.
Many Republicans--and consumers as well--say private plans are more efficient than the traditional government-run Medicare program. While Democrats insisted private insurers would not save money for taxpayers, the resulting decreases in insurance premiums suggest otherwise.
Many of the 4.6 million Medicare beneficiaries who are enrolled in managed care plans had seen steady premium inflation and cuts in services since 1999. As many as 2 million older Americans lost their HMO coverage as insurers withdrew from the market because Medicare reimbursements have trailed rising health care costs, increasing an average of just 2 percent in 2003.
Leslie V. Norwalk, acting deputy administrator of the federal Centers for Medicare & Medicaid Services, predicted the increased payments, which took effect March 1, will encourage many private plans to return to the Medicare HMO program.
The Bush administration predicted the new Medicare law will encourage people to enroll in HMOs and similar private plans called preferred provider organizations (PPOs). Administration officials estimate that by 2007, 35 percent of Medicare beneficiaries will be members of such plans.
[Conrad F. Meier, "Medicare HMO Premiums Plummet," Health Care News, The Heartland Institute, 1 March 2004.]
While certainly controversial, the latest Medicare reform effort does attempt to encourage private provision of Medicare. For consumers, the federal government's efforts are paying off:
Millions of seniors enrolled in private-sector Medicare HMOs are getting a big surprise: lower health insurance premiums and increased benefits. HMOs for the elderly are offering substantial rate cuts and benefit increases in response to a $500 million boost from the federal government this year.
The new Medicare law signed by President George W. Bush in December 2003 not only created a prescription drug benefit but also gave private-sector health care plans a larger role in the program.
Many Republicans--and consumers as well--say private plans are more efficient than the traditional government-run Medicare program. While Democrats insisted private insurers would not save money for taxpayers, the resulting decreases in insurance premiums suggest otherwise.
Many of the 4.6 million Medicare beneficiaries who are enrolled in managed care plans had seen steady premium inflation and cuts in services since 1999. As many as 2 million older Americans lost their HMO coverage as insurers withdrew from the market because Medicare reimbursements have trailed rising health care costs, increasing an average of just 2 percent in 2003.
Leslie V. Norwalk, acting deputy administrator of the federal Centers for Medicare & Medicaid Services, predicted the increased payments, which took effect March 1, will encourage many private plans to return to the Medicare HMO program.
The Bush administration predicted the new Medicare law will encourage people to enroll in HMOs and similar private plans called preferred provider organizations (PPOs). Administration officials estimate that by 2007, 35 percent of Medicare beneficiaries will be members of such plans.
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