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Retirees Laud Obama Plan
Thursday, February 26, 2009
For Immediate Release
Retirees Laud Obama Plan to End Subsidies to Insurance Companies
Eliminates "Corporate Welfare" in Privatized Medicare Plans
The following statement was issued today
by Edward F. Coyle, Executive Director of the
Alliance for Retired Americans, in response to
the proposed Fiscal Year 2010 budget released
today by the Obama administration.
"Retirees applaud President Obama's proposed elimination of taxpayer subsidies - $176 billion over the next ten years - to large insurance companies who operate privatized Medicare Advantage plans at a cost between 12 and 19 percent higher than if Medicare were to directly serve these same people.
"This egregious example of corporate welfare drains the Medicare Trust Fund and forces every senior to spend an additional $3 in monthly premiums to cover these costs. This money could go toward improving Medicare and making it easier for retirees to afford to see their doctor or fill a prescription.
"President Obama made it crystal clear today that Medicare's top priority should be the health of our nation's seniors, not its big drug and insurance companies. This is a refreshing change in Washington. We urge Congress to eliminate these wasteful subsidies, and return Medicare Advantage to a level-playing field in competing with other health plans.
"But at the same time, we are concerned about the budget's call for higher Medicare Part D premiums for some beneficiaries. This is a short-sighted approach, increasing out-of-pocket costs to satisfy today's budgetary pressures, rather than as part of a comprehensive Medicare Part D reform that better helps seniors. In these difficult economic times, we are wary of any changes which may adversely affect retirees. We will closely follow this issue in the coming months."
For more information on the Alliance, visit http://www.retiredamericans.org/ or call 1-888/373-6497.
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Contact: Marcie
Kohenak, (202) 637-5178 or mkohenak@retiredamericans.org