Joseph Paduda's weblog on managed care for group health, workers compensation & auto insurance, covering health care cost containment, health policy, health research, and medical news for insurers, employers, and healthcare providers.

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Pete Stark fires the first shots

It's starting.

Rep. Stark (D CA) is already talking about cutting subsidies for Medicare Advantage programs, which he claims are costing taxpayers over 12% more than standard Medicaid programs.

This comes as no surprise to loyal readers and those who are old enough to remember when "Pete" Stark was a major player in national health care policy.

The study cited by Stark in his comments came from the Commonwealth Fund, which noted that on a cost-per-beneficiary basis, MA plans cost over $900 more than fee-for-service programs.

Democrats are all-but-certain to make MA plans a target early in the new year. Given the Dem's desire to enrich the Part D program by minimizing the doughnut hole, they're going to have to find the money somewhere.

And there is a lot of money flowing to Medicare Advantage programs.

Comments

The reimbursement rate to MA plans prior to MMA'03 was 90%. Why not reduce to no more than 95%, instead of 100%? Privatization is good if the private sector can do it for LESS than the government, NOT MORE!!

Joseph Paduda is the principal of Health Strategy Associates.

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