Post by unlawflcombatnt on Jul 26, 2007 15:55:20 GMT -6
A story today in Yahoo News describes the media blitz being undertaken by greedy HMOs to protect their Corporate Welfare resulting from overpayment from Medicare. HMOs have consistently sucked off fees far in excess of the costs of the direct Medicare costs for taking care of patients. Congress has previously paid HMOs over $47 billion more annually than it would have cost if doctors had been paid directly by Medicare. This has been a financial bonanza for HMOs and insurance companies, financed exclusively at the taxpayer's expense. Below are excerpts from an article describing this titled
HMOs to start ad blitz against Medicare cuts
By Kim Dixon
"U.S. health insurers will launch one of their biggest campaigns ever on Thursday to stem the loss of billions of dollars in Medicare payments and they will feature seniors, like Harry and Louise a decade ago, fretting over their benefit coverage.
The deep-pocketed industry is on defense as the U.S. House of Representatives considers slashing $47 billion in payments to private health plans in Medicare, the federal insurance for the elderly and disabled, to help expand a popular children's health program.
Private health insurers' first television advertisement will appear during evening programming and feature a series of seniors worried that cuts to the so-called Medicare Advantage private plans will cost them more and lead to disruption in care.
"The industry has a lot at stake, not just in the short term in terms of profits and margins on these plans, but in terms of a long-term attempt to privatize as much as Medicare as they can," Jonathan Oberlander, associate professor of politics and policy at the University of North Carolina, said.
"This is a very lucrative market for them and it's been booming," he said.
The trade group America's Health Insurance Plans (AHIP), sponsor of the ads.... will consider naming lawmakers for the first time in future ads....
About 20 percent of the 45 million individuals in Medicare are enrolled in private plans that have become major profit centers for companies like Humana Inc., UnitedHealth Group and HealthSpring Inc..
In the current earnings season, the big private insurers are delivering double-digit profit growth, with tens of billions in revenues industry-wide....
Analysts believe the proposed $47 billon in cuts will be skimmed during negotiation, but they are predicting cuts of up to $30 billion over five years....
(The HMOs ads are) misleading, according to Tricia Neuman, director of the Medicare Policy Project at the nonpartisan Kaiser Family Foundation, who has testified before Congress on the issue.
"It's not necessarily the case that people are better off financially if they sign up for Medicare Advantage," she said, noting the plans can charge higher doctor or hospital co-pays....
Payments to private health plans are on the block because several groups, including the independent federal Medicare Payment Advisory Commission (MedPac), have reported they are paid significantly more than government-run Medicare.
In March, MedPac reported that private Medicare plans are paid up to 19 percent more than the publicly-run plans....
The original intent of Medicare private plans was to save money for Medicare, which is expected to exhaust its hospital fund by 2019. Instead they are adding costs.
"The excess payments to private plans allow them to be less efficient than they would otherwise have to be," MedPac said.
The MedPac report also points out that the extra benefits are being funded by all 45 million Medicare beneficiaries, for the benefit of the 9 million or so in the private plans...."
The full article can be found at
HMOs to start ad blitz against Medicare cuts
HMOs to start ad blitz against Medicare cuts
By Kim Dixon
"U.S. health insurers will launch one of their biggest campaigns ever on Thursday to stem the loss of billions of dollars in Medicare payments and they will feature seniors, like Harry and Louise a decade ago, fretting over their benefit coverage.
The deep-pocketed industry is on defense as the U.S. House of Representatives considers slashing $47 billion in payments to private health plans in Medicare, the federal insurance for the elderly and disabled, to help expand a popular children's health program.
Private health insurers' first television advertisement will appear during evening programming and feature a series of seniors worried that cuts to the so-called Medicare Advantage private plans will cost them more and lead to disruption in care.
"The industry has a lot at stake, not just in the short term in terms of profits and margins on these plans, but in terms of a long-term attempt to privatize as much as Medicare as they can," Jonathan Oberlander, associate professor of politics and policy at the University of North Carolina, said.
"This is a very lucrative market for them and it's been booming," he said.
The trade group America's Health Insurance Plans (AHIP), sponsor of the ads.... will consider naming lawmakers for the first time in future ads....
About 20 percent of the 45 million individuals in Medicare are enrolled in private plans that have become major profit centers for companies like Humana Inc., UnitedHealth Group and HealthSpring Inc..
In the current earnings season, the big private insurers are delivering double-digit profit growth, with tens of billions in revenues industry-wide....
Analysts believe the proposed $47 billon in cuts will be skimmed during negotiation, but they are predicting cuts of up to $30 billion over five years....
(The HMOs ads are) misleading, according to Tricia Neuman, director of the Medicare Policy Project at the nonpartisan Kaiser Family Foundation, who has testified before Congress on the issue.
"It's not necessarily the case that people are better off financially if they sign up for Medicare Advantage," she said, noting the plans can charge higher doctor or hospital co-pays....
Payments to private health plans are on the block because several groups, including the independent federal Medicare Payment Advisory Commission (MedPac), have reported they are paid significantly more than government-run Medicare.
In March, MedPac reported that private Medicare plans are paid up to 19 percent more than the publicly-run plans....
The original intent of Medicare private plans was to save money for Medicare, which is expected to exhaust its hospital fund by 2019. Instead they are adding costs.
"The excess payments to private plans allow them to be less efficient than they would otherwise have to be," MedPac said.
The MedPac report also points out that the extra benefits are being funded by all 45 million Medicare beneficiaries, for the benefit of the 9 million or so in the private plans...."
The full article can be found at
HMOs to start ad blitz against Medicare cuts