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Thursday, July 3, 2008

Health Industry Pushes Back Over Medicare Rage

Opponents of last week's failed Medicare legislation are pushing back against outrage against those who helped bring down the legislation.

Specifically, an organization that represents American health plan insurers issued a series of statements that breaks down, state-by-state, the pain that Medicare bill would have caused beneficiaries who rely on the so-called Medicare Advantage plans.

The statements from America's Health Insurance Plans (AHIP), come after the American Medical Association (AMA) began running television ads targeting senators who helped filibuster the legislation. The AMA and state physician groups are angry because the bill would have reversed a 10.3 percent cut the Bush administration implemented this year in the payments physicians will receive for treating Medicare patients. That cut took effect this week.

The agency which administers Medicare, the Centers for Medicare and Medicaid Services, has for for several years been looking for ways to contain skyrocketing costs for the program, which is used by senior citizens and certain other benefit groups, such as those with fatal kidney disease.

The bill last week passed the House on a bipartisan basis but was halted by Republicans in the Senate.

AHIP, which says it represents those who provide health coverage to more than 200 million Americans, opposes the Medicare bill, H.R. 6331.

The organization released statements describing the pain it would cause seniors in the "hardest hit states by this legislation," which include Massachusetts, New York, Pennsylvania, Texas.

For instance, H.R. 6331 would have cut $841 million from the Medicare Advantage plans in Pennsylvania alone, affecting some 100,000 beneficiaries in that state alone, according to AHIP figures.

"Congress should fix the physician payment cut without forcing seniors to pay for it," says Karen Ignagni, president and CEO of AHIP. "Seniors enrolled in Medicare Advantage could face limited choices, reduced benefits, and higher out-of-pocket costs if these cuts became law."

Medicare Advantage plans were created in 2003 by the Medicare Modernization Act, and are more like HMO plans than the conventional Medicare program.

Medicare Advantage plans offer additional benefits and services that are not available in traditional Medicare, AHIP says, including reduced out-of-pocket costs; zero-premium comprehensive drug coverage; vision, hearing, and dental coverage; wellness programs; and disease management and care coordination programs.

Medicare Advantage enrollees save an average of $90 per month -- through improved benefits and lower out-of-pocket costs -- compared to what they would pay in traditional Medicare, according to AHIP.

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