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Rep. Stark To Introduce Bill To Reduce Reimbursements For Medicare Advantage Plans

House Ways and Means Subcommittee on Health Chair Pete Stark (D-Calif.) on Wednesday announced that by July he plans to introduce legislation to reduce Medicare reimbursements for private Medicare Advantage plans to help fund other health care proposals, CQ HealthBeat reports. The Medicare Payment Advisory Commission estimates that Medicare reimbursements for MA plans -- which cover extra benefits, such as vision and hearing tests and treatments -- are 12% higher than reimbursements for the fee-for-service program for equivalent benefits. Stark said that he would use savings from the reduced Medicare reimbursements for MA plans to reverse a 10% reduction in payments for physicians scheduled for 2008. In addition, Stark said he would use the savings to provide more preventive care for Medicare beneficiaries and provide low-income beneficiaries with additional help with premiums and deductibles. Stark also said he could use some of the savings for a proposed expansion of SCHIP by $50 billion over five years. CMS chief actuary Richard Foster on Wednesday told the subcommittee that the Medicare hospital trust find would remain solvent for two additional years and beneficiaries would pay $2 less per month in premiums in the event that reimbursements for MA plans equaled reimbursements for the fee-for-service program (Wayne, CQ HealthBeat, 4/25). A report released on Monday by Medicare trustees estimated that the Medicare hospital trust fund would become insolvent by 2019 (CongressDaily, 4/26). Foster Discusses Medicare Rx Drug Benefit
At a forum on Tuesday sponsored by the American Enterprise Institute, Foster said that the rate of prescription spending growth used to calculate the cost of the Medicare prescription drug benefit likely will increase to 12.6% annually over the next 10 years, after growth decreased to single digits from 2004 to 2006. Foster also said that Medicare prescription drug plan premiums, which decreased in 2007, likely will increase in the future. In addition, Foster said that inpatient hospitalizations among Medicare beneficiaries, which decreased by 680,000 from 2005 to 2006, likely did not result because of the Medicare prescription drug benefit, as HHS Secretary Mike Leavitt indicated earlier this week. Based on current conditions, Foster estimated that Medicare Part B premiums would increase from $93.50 in 2007 to $100.50 in 2008 (Reichard, CQ HealthBeat, 4/25).

A webcast of the forum is available online at kaisernetwork.org.

"Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.





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