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Tipsheet

Republican Governors Hit Obama Administration on Medicare Advantage Rates

In a new poll out yesterday we see that Americans are becoming less trusting of President Obama, and it seems there may be a new reason for many to worry about his honesty. At least three major governors are willing to step up and call out the president for his lies.

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Governors Rick Perry, Rick Scott and Bobby Jindal all authored a letter together to the president about his latest act of political theatre. The Obama administration recently announced that the Medicare Advantage rates would experience a slight pay bump next year. But according to several insurance analysts, plan rates are expected to drop as much as 3.5 percent.

In their letter, the governors wrote, “This is on top of the 6 percent cut to fiscal year 2014 payments. Collectively, these cuts will significantly harm America’s seniors.”

Medicare Advantage is the private plan that offers Medicare benefits. The Center for Medicare and Medicaid Services announced last week that 2015 reimbursement rates would increase by .4 percent for Medicare Advantage. This announcement went against previous plans to cut funds to Medicare Advantage. This program provides coverage to almost 30 percent of all Medicare recipients.

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If the planned cuts had actually gone into effect, it was expected that seniors would face premium increases and benefit reductions of $35 to $75 per month.

In their letter, the governors called on the Center for Medicare and Medicaid Services to work with Congress in order to prevent any plan cuts. It is expected that this current “pardon” for the Medicare Advantage program will be short lived.

Hopefully the governors’ letter will have some sort of impact on the way policymaking goes in the future. Perhaps democrats will learn that protecting the elderly community is not an option. Their benefits need to be protected.

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