Government
Medicare health plan pay to increase
NEWS IN BRIEF — Posted Feb. 2, 2004
Medicare managed care plans will get an average 10.6% increase in payments, the Centers for Medicare & Medicaid Services has announced. The increase, effective March 1, includes funds passed as part of the Medicare reform law last year.
Plans participating in what will now be called Medicare Advantage must use the additional funds to cut beneficiary costs, enhance benefits, stabilize or expand physician networks, or create reserve funds against future premium increases or benefit reductions.
The announcement renewed Democratic criticisms that Republicans are trying to privatize Medicare. "Yet again, Republicans have crafted a sweetheart deal for HMOs and the insurance industry that comes at the expense of beneficiaries and taxpayers," said Rep. Fortney "Pete" Stark (D, Calif.). "Medicare HMOs were already substantially overpaid."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/02/02/gvbf0202.htm.
