WASHINGTON, April 8 /PRNewswire/ -- Karen Ignagni, President and CEO of America's Health Insurance Plans, made the following statement today regarding the recent report by the Medicare Payment Advisory Commission on Medicare payment rates.
"The facts show that seniors and disabled Americans in Medicare health plans enjoy more benefits, lower costs and better health outcomes than their counterparts in the fee-for-service program -- despite the fact that Medicare health plans have been systematically under-funded in past years, with insurers receiving payments far below the underlying health care cost increases.
"The Medicare Payment Advisory Commission (MedPAC) has used flawed methodology to assert that Medicare Advantage plans are paid approximately 107 percent of what it would cost to cover their enrollees in the Medicare fee- for-service (FFS) program. This finding, like previous MedPAC findings on this issue, fails to include direct and indirect FFS payments to teaching hospitals.
"Accounting for all FFS payments would raise the FFS payment rate above the Medicare Advantage payment rate for the majority (52%) of Medicare Advantage beneficiaries. We believe these costs should be included to achieve an accurate comparison of Medicare Advantage and Medicare FFS payments.
"Four months have passed since the signing of the Medicare reform bill, and already 3.7 million Medicare health plan beneficiaries are receiving better benefits, 2 million are paying less out of pocket and nearly 2 million are paying lower premiums. America's health insurance plans will continue to work with members of Congress and the administration on ways to enhance and expand affordable coverage choices for all Medicare beneficiaries."
America's Health Insurance Plans - Providing Health Benefits
to More Than 200 Million Americans
America's Health Insurance PlansCONTACT: Mohit M. Ghose of America's Health Insurance Plans,+1-202-778-8494, or mghose@ahip.net
Web site: http://www.ahip.net/
