Donald Berwick, the Administrator of the Centers for Medicare and Medicaid Services (CMS), appeared yesterday at a House Ways and Means Committee hearing on the Affordable Care Act and its effect on Medicare.
Republicans on the committee said new rules and funding changes for Medicare Advantage are hurting seniors. Representative Dave Camp (R-Mich) said seniors are going to lose benefits because of the Affordable Care Act.
He said, “Sadly, that is already happening—from those who depend on local hospitals to folks who depend on Medicare Advantage plans to retirees receiving retiree drug coverage to seniors who will pay higher prices”.
Mr. Camp did not offer specifics to back up his view that seniors are being hurt by changes to Medicare Advantage. Dr. Berwick, the Administrator of Medicare, did offer facts and figures to support his case that nothing bad has happened to Medicare Advantage plans as a result of the Affordable Care Act.
Dr. Berwick said that Medicare Advantage (MA) enrollment rose 6% in 2010 and premiums for MA plans actually decreased overall. He said there are now over 12 million people enrolled in Medicare Advantage plans. Berwick said, “On average, beneficiaries have seen a 6% reduction in their premiums, and there is a 5% increase in the number of beneficiaries who are now in 4- and 5-star Medicare Advantage contracts this year versus last year.”
So who is right?
Well……Berwick offered statistics which are very straightforward. More people enrolled in Medicare Advantage plans last year, and that was because these plans are still attractive alternatives to Original Medicare and Medicare supplements.
But……The real cuts to Medicare Advantage funding are in the works for next year’s plans, and we won’t know until September if 2012 MA premiums will go way up or if co-pays will see big increases.