There is more evidence that partially privatizing Medicare is currently hurting our seniors.
Private insurers already have been given a role in delivering Medicare coverage. In addition to private companies providing "Part D" prescription drug coverage, seniors can enroll in "Medicare Advantage"—private plans that supposedly save money.
But back in December, Families USA (PDF file) found the opposite was true.
...private plans reduce costs by recruiting the youngest and healthiest beneficiaries, a practice known as “cherry-picking.” The result is extreme overpayments to the private managed care plans ...
...In 2005 alone, taxpayers lost $2.7 billion in overpayments [while i]nsurance companies that sell Medicare Advantage plans are substantially overpaid to market their plans...
And Monday, The New York Times reported that some insurance companies are engaging in unethical marketing practices, getting seniors to sign up for plans with higher co-payments than traditional government-administered Medicare.
It also reports:
Help us spread the word about these important stories...
Bookmark/Search this post with: