Printable Version
July 23, 2007
Monday, July 23, 2007
Medicare Advantage a Disadvantage to Seniors
Retirees Across the Country Are Calling
Members of Congress
on Monday to Stop
Overpayments to Private Insurance
Companies
For Immediate
Release
July 23, 2007
Washington, D.C.— Together with other organizations from the Leadership Council of Aging Organizations, the Alliance for Retired Americans is encouraging its members and other seniors to call Capitol Hill on Monday, July 23, in support of legislation that would create a level playing field for traditional Medicare and private Medicare Advantage (MA) plans. Once they are connected, seniors are letting Congressional staff know that they support ending overpayments to MA insurance companies, and using those savings for increased assistance to low-income seniors as well as health coverage for uninsured children. The campaign is expected to generate thousands of phone calls.
The U.S. House of Representatives will soon be considering legislation to improve traditional Medicare and help uninsured kids. Private MA plans were created to save money, but are actually costing billions more than traditional Medicare. These overpayments to private MA plans hurt the Medicare trust fund, and increase Part B premiums for all Medicare beneficiaries, including the over 80% who have chosen to remain in traditional Medicare. The government pays the plans 12 to 19 percent more than the cost would be under Medicare.
On July 16 and 17, 2007, the CBS Evening News focused on unscrupulous marketing practices and other problems related to MA, noting confusion over coverage, premiums, co-pays, and provider networks. Included in the reports were a Kentucky woman who had to call 9-1-1 to get an MA salesman out of her house, and a Mississippi man who was only able to get off his MA plan 11 days after he died. CBS also reported that at least 36,000 seniors have pulled out of their MA plans in just the first four months of this year, and nearly 100 private plans have been ordered by Medicare to change the way they do business. “I’m glad someone called 9-1-1,” said George J. Kourpias, President of the Alliance for Retired Americans. “This is an emergency.”
Contact: Marcie Kohenak, 202/637-5178, mkohenak@retiredamericans.org