Health insurance and health care reform is certainly the topic of the moment — President Barack Obama has broad reform goals in his sights and Medicare is a top target.
For a while now, Democratic lawmakers have sought out to reduce the amount the government pays to private health insurance companies that provide alternative Medicare coverage, such as Medicare Advantage.
Medicare Advantage plans give eligible Americans the option to receive their health benefits through a private insurer rather than the government.
But recent research has found insurers get paid around 14 percent more than what the government spends for people on regular Medicare Parts A and B, for example.
That’s why it’s a target for the Democrats, who want to cut Medicare Advantage payments to save money and redirect it to other health reform efforts.
According to the Wall Street Journal, that’s exactly what President Obama has in mind. The president wants to cut some $117 billion over the next decade to these Medicare Advantage plans.
Obviously, the health industry is not so much in support of these deep cuts. They argue it will lead to higher premiums, cut benefits, or the abandonment of some geographic markets completely, wrote the Journal.
But the Democrats argue the higher payments are unnecessary and the money could be put to better use.
So on one hand, we have Medicare Advantage plans that many times provide more customized coverage and a lower cost option for older Americans. On the other, we have inflated payments that could be reduced to provide more additional health reform funding.
Let the debate begin.