Barrasso: Medicare Advantage Cuts Are Bad for Seniors

February 25, 2014

Contact: Emily Schillinger ~202.224.6441

EmilySchillinger@Barrasso.Senate.Gov

Barrasso: Medicare Advantage Cuts Are Bad for Seniors

"These are people who don't have a lot of money but who still want the peace of mind that comes with good health insurance. Those seniors are now facing much higher costs or lower benefits because of the Obama Administration decisions rolled out last Friday night."

Go to: http://www.youtube.com/watch'v=lIb8ZFtGqc to watch Sen. Barrasso's speech.

WASHINGTON, D.C. - Today, U.S. Senator John Barrasso (R-WY) spoke about how Medicare Advantage cuts will hurt seniors and Washington Democrats know it. Barrasso points out that's why Senate Democrats are trying to stage an "Obamacare PR Counteroffensive" on Wednesday http://blogs.rollcall.com/wgdb/senate-democrats-plan-obamacare-counteroffen sive/.

Excerpts of his remarks:

"Late in the day on Friday after reporters had gone for the weekend, the Obama Administration quietly released its new Medicare Advantage payment cuts-cuts President Obama wants to make to this program I believe as a doctor are potentially devastating to millions of Americans.

"15 million Americans depend on these health insurance plans the President wants to cut. But instead of listening to seniors and investing in a program that works very well, the Obama Administration is doing everything conceivable to make sure that Medicare Advantage fails.

"Back in December, the press gave President Obama the lie of the year award for his statement if you like your health care plan, as he said, you can keep it. Well, millions of people across America have now gotten letters saying their insurance plans are canceled because of the Democrats' health care law.

"By cutting Medicare Advantage, I will tell you, the Obama Administration is now ensuring that even more Americans can't keep the health care plan that they like.

"29% of all Medicare patients have chosen to enroll in Medicare Advantage-there's a reason for that. The Medicare Advantage program lives up to its name by delivering clear advantages.

"The plans give extra benefits like dental coverage, vision coverage, hearing benefits, wellness programs, things that are important to our seniors. Sometimes they offer smaller co-payments, lower deductibles, less out-of-pocket costs than the traditional Medicare program does.

"Sometimes seniors even pay a higher monthly premium for these extra benefits but often the benefits are financed through planned savings due to the programs and the way they work. For many seniors, Medicare Advantage is a good option. It is the right option for them.

"These are people who don't have a lot of money but who still want the peace of mind that comes with good health insurance. Those seniors are now facing much higher costs or lower benefits because of the Obama Administration decisions rolled out last Friday night.

"Because of this proposal and the Administration's way to try to sneak it out on Friday, seniors are concerned and they're anxious about what the Administration also is hiding.

"You know, ever since the President and Democrats in Congress passed their health care law, they've been going after seniors who rely on Medicare. They raided a total of over $700 billion from Medicare, and we discussed that during the debate over the health care law. The money was taken from seniors on Medicare, not to strengthen Medicare, not to secure the future of Medicare, but to start a whole, new government program for other people.

"There's a whole new bureaucracy and it's been created by Washington Democrats in the health care law. Now, Obamacare specifically targeted the Medicare Advantage program. Significant amounts of direct and indirect cuts, payment cuts totaling over $300 million. That's 43% of the total Medicare cuts just for this one program.

"So 29% of Americans, the seniors relying on Medicare Advantage because about 29% of seniors on Medicare are in Medicare Advantage, well, they're responsible for 43% of the cuts. Because of these cuts and other changes in the law, fewer private health care plans are going to be able to participate in Medicare Advantage in the future.

"That means a number of things. That means that some people who rely on these plans are going to find out that their plan is being canceled entirely, and some people in Iowa, thousands of people in Iowa have already gotten letters canceling their Medicare Advantage plan.

"The Kaiser Family Foundation looked at what the President's health care law does to seniors, and they say that about a half a million patients will lose their existing coverage. Seniors on Medicare Advantage. These seniors are going to have fewer options to get the care they need from the doctor that they choose at lower cost.

"Now more of these people are going to be forced into a one-size-fits-all government plan. They are going to lose the insurance that they liked, insurance that worked for them.

"Some people may find that their new insurance network doesn't include the doctors that they had before. We've seen this happening all across the country as the major provider of Medicare Advantage said to try to make it all work, they had to eliminate many, many doctors from their plans so that those doctors are not going to be able to keep their patients and those patients are not going to be able to keep their doctors, in spite of what the President told the American people when he looked into the camera and said, if you like your doctor, you can keep your doctor.

"A lot of these people are going to see their costs increase. The Kaiser Family Foundation says that the average out-of-pocket limit for Medicare Advantage plans is going to increase by $464 this year.

"The President and Washington Democrats say that their health care plan was going to save people money. That's what people wanted. The President told people what they wanted to hear but he failed to give them what he promised. That's why his credibility ratings are down.

"Turns out, costs continue to go up because of the law. This new round of cuts to Medicare Advantage is just another example of how the health care law is wrecking our health care system, not fixing it.

"America's health care system wasn't working before, but the President and the law that Democrats voted for has made it worse.

"Medicare is headed toward bankruptcy, but the Administration has rejected bipartisan solutions to reform and to strengthen the program. Through cuts like the ones announced last Friday, the President's health care law takes money from Medicare and uses it to pay for something else.

"Now, there was actually a double-data dump that occurred on Friday. The Medicare Advantage cuts were announced late in the day and then later than that, the CMS-the Medicare-Medicaid Services for the country, they came out with their report and it reported that two-thirds of small businesses that provide health insurance for their employees would see their prices go up because of the health care law.

"Two-thirds of small businesses. These are ones that by law don't have to provide health insurance. Employees less than 50, they don't have to by law supply it, but they do often do that. They do supply that insurance. I think about 17 million people get insurance that way, through work.

"Businesses that are not mandated to supply the insurance, but they do to get good workers. And, as a result, what they're seeing is that their rates are going up. So that was part of the data dump that occurred on Friday.

"Now, it was interesting to see a note that came out of the Democrats' lunch meeting today. It was just reported in 'Roll Call' magazine. A group of Senate Democrats are expected to launch a counteroffensive in favor of Obamacare on Wednesday. A response from persistent attacks from their Republican counterparts.

"Well first, I would like to point out that the attacks on the law are coming from American citizens all around the country-it's what we hear at town hall meetings, it is what we hear as we travel around the country. People whose families are noting that their families are paying more, getting less.

"The report in 'Roll Call' says that Democrats discussed the new endeavor touting benefits of the Affordable Care Act during Tuesday's weekly caucus lunch to a warm reception, according to Connecticut'sChristopher S. Murphy, who is one of the Senators leading the effort. A Senate Democrat aide said the rollout will commence Wednesday.

"Well I welcome an opportunity to hear what the Democrats have to say because it is the damage being done by this health care law to people all across the country is significant.

"I think law was not well-thought-out, was not well-planned. So I will be interested tomorrow to see Senate Democrats come to the floor with their 'Obamacare PR Counteroffensive' and explain to the American people why the American people are being faced with a website with a disastrous rollout four days after the President told the American people it will be easier to use than Amazon and cheaper than your cell phone bill and you can keep your doctor if you like your doctor.

"Why five million people then got letters from insurance companies saying their insurance policies have been canceled. Why the website failure is just the tip of the iceberg that the American people are seeing right now in terms of premiums going up, canceled policies, can't keep their doctor, higher out-of-pocket costs, higher co-pays, higher deductibles, all in spite of the President's glowing promises which in my opinion were made to deceive the American people in an effort to pass a health care law which many people see as bad for patients, bad for providers, and bad for the taxpayers.

"So I'm going to continue to come to the floor and talk about what I hear as I go home to Wyoming each week in terms of a health care law which is not providing the patients what they asked for, what they need and what they were promised."

http://barrasso.senate.gov