WASHINGTON, Sept. 28 /PRNewswire/ -- America’s Health Insurance Plans (AHIP) President and CEO Karen Ignagni made the following remarks in response to a new report from the Government Accountability Office (GAO) regarding the preferred provider organization (PPO) demonstration project undertaken in Medicare:
(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )
“Based on longstanding independent studies done on the Medicare Advantage (MA) program, we respectfully disagree with the GAO’s findings on beneficiary out-of-pocket costs in the PPO demonstration program. Data from the Centers for Medicare and Medicaid Services (CMS) indicate that beneficiaries who choose MA could save over $700 in out-of-pocket costs when compared to those in FFS Medicare, and we know that individuals with chronic diseases save even more. Even the GAO agrees that PPO demonstration plans have reduced out-of- pocket costs for beneficiaries in poor health by providing extra coverage for inpatient hospitalization services and prescription drugs.
“With respect to administration issues raised in the report, since the Agency has now changed its requirements to address GAO’s concerns, we believe that the report underestimates the experience that CMS and health plans have gained through this demonstration process which will help lay the groundwork for continued PPO plan choices in the Medicare program.
“Our members look forward to working with CMS to create a program that builds upon this demonstration program and provides the best value and new choices for all beneficiaries across America, including comprehensive coverage, better benefits, coordinated care, and prescription drugs.”
America’s Health Insurance Plans -- Providing Health Benefits to More Than 200 Million Americans
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CONTACT: Mohit M. Ghose of America’s Health Insurance Plans,+1-202-778-8494
Web site: http://www.ahip.net/
