Rep. Levin Issues Statement at Medicare Advantage Program Hearing

WASHINGTON, May 8 -- Rep. Sander Levin, D-Michigan, ranking Democratic member of the House Ways and Means subcommittee on health, issued the following opening statement at a hearing on medicare advantage program:

"Thank you, Mr. Chairman, and thank you to our witnesses for joining us this morning.

"The Medicare Advantage program is based on the promise of choice for seniors, and beneficiaries today enjoy more choices than ever before. Those who prefer care without restrictions on doctors and hospitals can enroll in the traditional Medicare program, while those who prefer a managed care alternative have the option to enroll in Medicare Advantage. Reforms made by the Affordable Care Act have improved quality and reduced overpayments in Medicare Advantage - while still providing 99 percent of seniors access to a plan.

"For the promise of choice to be a meaningful one, Medicare beneficiaries must be given complete and accurate information. A 2017 Kaiser Family Foundation study found that 35 percent of Medicare Advantage enrollees are in plans with narrow provider networks. Additionally, in many states, beneficiaries with preexisting conditions who wish to switch back to traditional Medicare can be subjected to discrimination and underwriting in the private Medigap market. These and other tradeoffs are not adequately conveyed to beneficiaries on the current Medicare Plan Finder website.

"It is also crucial that we acknowledge and respect the choice of the two-thirds of beneficiaries who are enrolled in traditional Medicare by addressing counter-productive limitations in the program. For example, Committee Democrats have introduced legislation to provide all seniors with comprehensive dental, vision, and hearing coverage. Denying coverage for these essential services not only hurts beneficiaries, but can also lead to greater expenses when untreated conditions lead to complications.

"I would further draw the Chairman's attention to an area of bipartisan agreement regarding Medicare choices. At a September 2017 markup, Chairman Brady affirmed his commitment to ensuring parity in telehealth benefits between traditional Medicare and Medicare Advantage. We are still waiting to see action on that commitment. Recent expansions of supplemental benefits in Medicare Advantage further underscore the need to provide parity to all seniors.

"We also would be remiss if we failed to discuss recent regulatory actions by the Trump Administration that could undermine choice and increase confusion for Medicare beneficiaries under the guise of promoting flexibility. Weakening of plan design rules in the 2019 Call Letter could allow plans to cherry-pick and discriminate against sicker beneficiaries. CMS has also signaled an intent to roll back consumer protections in the Medicare Marketing Guidelines without providing a draft for public comment.

"Finally, as we discuss choices for Medicare beneficiaries, let us remember the very difficult choice so many have in finding a way to pay for their prescription medicines. President Trump has been promising to lower these costs - a pledge we will likely hear again later this week - but there has been a painful lack of action on this issue. Democrats have put forward and stand ready to act on real reforms, including allowing Medicare to directly negotiate prices in Part D with drug manufacturers. Mr. Chairman, I urge you to call a hearing in the near future on addressing the high cost of prescription drugs.

"I again thank our witnesses for joining us this morning. I look forward to a constructive conversation."