Oops! Republican Hearing on Medicare Advantage Backfires

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Oops! Republican Hearing on Medicare Advantage Backfires

The following press release was published by the U.S. Congress Committee on Ways and Means on July 24, 2014. It is reproduced in full below.

WASHINGTON - This morning, Republicans on the House Ways and Means Committee held a hearing in an effort to demonstrate that the Affordable Care Act has harmed the Medicare Advantage program. As Chairman Brady in his opening statement said, “The future for Medicare Advantage may look grim." The experts that the Republicans invited, though, disagreed. So much so that Ranking Member Jim McDermott remarked, “It doesn’t sound to me like the program is having any difficulty - quite the opposite."

WITNESS TESTIMONIES:

Chris Wing, SCAN Health Plan: “The MA program continues to grow in popularity. It gives seniors and other eligible individuals what they want: choice, coordination of care, affordability. It has begun to put the incentives in place for constant quality improvement by rewarding collaboration between providers and plans. Congress should have a strong interest in seeing the continued advancement of Medicare Advantage."

Joe Baker, Medicare Rights Center: “Many predicted that ACA changes to MA payment methods would lead to widespread disruption of the MA market. However, there is little evidence that this has occurred. In fact, it is important to note that MA enrollment is at an all-time high, with nearly 16 million beneficiaries now enrolled in an MA plan, representing a steadily growing percentage of beneficiaries. In addition, premium costs, benefit levels, and the availability of MA plans remain relatively stable across the country."

Robert Book, Health Systems Innovation Network: “Since its inception, Medicare Advantage has proved to be one of the most popular and successful components of Medicare, with enrollment steadily increasing over time."

THE FACTS:

* Enrollment in Medicare Advantage is at a record-high with over 15 million Medicare beneficiaries enrolled.

* In total, Medicare Advantage premiums have fallen 14%. That means MA enrollees pay an average premium of about $31 per month.

* Underlying Medicare benefits increased (e.g., better drug coverage, free preventive care), in both MA and traditional Medicare. This means that plans had more money to spend on other benefits.

Source: U.S. Congress Committee on Ways and Means

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