CMS’ Final Attempt to Privatise Medicare Invokes Dismay Among Advocacy Groups

Medicare beneficiary representing organizations expressed dismay at the release of the Medicare Advantage/Prescription Drug Plan Call Letter. Private insurance companies that want to contract with Medicare have been given instructions via this call letter if they want to provide drug and health coverage. The letter was released earlier than previous years. The early release may be to make sure leniency continues in the oversight of private plans for at least another year. There may also be a last ditch effort to promote private Medicare Advantage plans.

According to Judith Stein from the Center For Medicare Advocacy, this letter shows how Medicare has failed to oversee highly priced and low value private insurance plans. The problem is not addressed by this call letter and discriminatory pricing continues for more costly services.
Although Medicare Advantage plans cost substantially more than traditional Medicare, there is no proof that they are better. Private health plans have participated in such efforts without any tangible evidence of them adding value.

A call letter that protects beneficiaries and taxpayers should have been issued according to the National Senior Citizens Law Center.