BIPARTISAN FORMER HHS SECRETARIES URGE STABILITY FOR MEDICARE ADVANTAGE

The following information was released by the America's Health Insurance Plans (AHIP):

In a new op-ed for STAT, Donna Shalala and Tommy Thompson two former HHS Secretaries under Democratic and Republican administrations urged policymakers to prioritize the stability of the Medicare Advantage coverage and benefits that 35 million seniors and individuals with disabilities count on.

Highlights from the bipartisan op-ed include:

"Tens of millions of seniors have recently wrapped up Medicare's open enrollment period, and the Centers for Medicare and Medicaid Services is touting premium stability in the Medicare Advantage (MA) program."

"Behind the unchanged average monthly premiums, a more concerning reality is unfolding for beneficiaries: fewer plan choices, reduced supplemental benefits, and higher out-of-pocket costs. And these reductions are far from being evenly distributed."

"In fact, for 2026, 2.6 million seniors saw their MA prescription drug plans discontinued, double last year's total. This erosion is not an accident of the market it is the direct, predictable consequence of flawed policy, and it's putting the stability of a vital program in jeopardy."

"MA plans have seen unprecedented financial strain due to reforms instituted by federal agencies over several years. These changes follow a common but misguided narrative: that MA has failed in its promise to reduce Medicare spending."

"A recent report from the Healthcare Leadership Council deconstructs the Medicare Payment Advisory Commission's (MedPAC) flawed analysis that quadrupled its own estimate of MA 'overpayment' compared to FFS. In 2024, MedPAC revised its methodology a way that essentially compares apples to oranges, drawing on outdated and incomplete data to suggest that MA plans are 'overpaid.' This is despite its own admission that before applying questionable adjustments from its new methodology, MA is paid at or below traditional Medicare.

"This narrative has put seniors' care at risk by driving policy decisions that threaten the very foundation of a program that works."

"After throwing MA a lifeline this year and increasing rates to more closely keep pace with cost and utilization trends, the recently released proposal for 2027 keeps payment flat. This continues the incorrect narrative that leads to underinvestment in the program and ultimately impacts seniors."

"We are increasingly seeing supplemental benefits pared back, provider networks narrowing, and beneficiary cost-sharing rising. This includes everything from higher rates for hospital stays and drug copays to the reduction or elimination of hearing, vision, dental, and other drivers of health."

"While it is crucial to maintain vigilance over costs, policymakers in Washington should not base major decisions on contested accounting that risks undoing a highly valued public-private partnership. Instead, they must focus on fundamental program sustainability and leveraging technology to improve patient outcomes and experiences."

A diverse coalition of health care, consumer, employer and policy organizations recently called on Congress to advance the Apples to Apples Comparison Act (H.R. 4093), bipartisan legislation designed to ensure the use of accurate data and methodology in government comparisons of MA and traditional Fee-for-Service (FFS) Medicare.