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AARP-AMA urge Senate SCHIP bill to include Medicare

Two of the most powerful lobbies in Washington urged the Senate to include Medicare reforms during negotiations to meld the vastly different House and Senate versions of the State Children’s Health Insurance Program reauthorization bill.

Simply put, the Senate bill doesn’t mention Medicare.

The House bill slashes payments to Medicare Advantage plans and eliminates a 10 percent Medicare cut in doctor payments scheduled to take effect Jan. 1.

The American Medical Association and AARP both like the House version better.

The letter glosses over cuts in Medicare Advantage and stresses additional benefits such as more preventive care and low income assistance in the House version.

“We urge Congress to part with ‘business as usual’ and take action to pay physicians fairly. Medicare improvements for physicians and protections for beneficiaries deserve to be addressed now, with responsible funding, rather than rushed through before Congress adjourns, as has been customary in years past,” the letter says.

Read the full letter here.

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Comments

By Beth Wellington

September 10, 2007 1:12 PM | Link to this

“Glosses over the cuts to the Medicare Advantage program? How did you get that out of the letter. Thanks, at least for providing the whole letter so we could see for ourselves.

“A fiscally responsible way to finance these Medicare improvements is to reduce the current excess payments to Medicare Advantage plans. The Medicare Payment Advisory Commission has found that these private insurance plans are paid, on average, 12 percent more than traditional Medicare. The payment disparity not only shortens the life of the Medicare Trust Fund, but is unfair to all taxpayers and the vast majority of beneficiaries who subsidize these excess payments. Eliminating the excess payments to these plans will restore greater balance between the traditional Medicare and Medicare Advantage program. The 80 percent of beneficiaries who participate in the traditional program, who are currently subsidizing the excess Medicare Advantage payments through higher premiums, deserve better. Congress should put both programs on equal footing and ensure that traditional Medicare is stable and properly funded so it can continue to deliver on its promise of providing quality healthcare to seniors.”

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