Four Republican Senators are asking the CMS actuary for the data behind his findings that enrollment in Medicare Advantage plans would shrink due to funding cuts under healthcare reform, according to a report by the Hill.
Sens. Charles Grassley (R-Iowa), Jon Kyl (R-Ariz.), Orrin Hatch (R-Utah) and Mike Crapo (R-Idaho) say the cuts would cause some plans to close down and others to drop benefits.
Due to federal subsidies, the average Medicare Advantage beneficiary costs roughly 14 percent more than the Medicare fee-for-service beneficiary. The reform law cuts the subsidies by roughly $145 billion over the next 10 years, with a freeze on payments starting next year and cuts starting in 2012.
In an April report, CMS actuary Richard Foster said when the new provisions are fully phased in enrollment in Medicare Advantage plans will have dropped by about 50 percent.
In a Sept. 24 letter to Mr. Foster, the GOP Senators requested all estimate calculations and a further estimate of projected reductions in the plan's spending per member per month.
Read the Hill report on Medicare Advantage.
Read more coverage on Medicare Advantage:
- CMS Achieves 1% Cut in Medicare Advantage Premiums by Denying Rate Increases, Benefit Cuts
- Many Medicare Advantage Plans Wouldn't Qualify for Upcoming Quality Payments Based on Current Data
- CMS Suspends Medicare Advantage Enrollment, Fines Quality Health Plan
Sens. Charles Grassley (R-Iowa), Jon Kyl (R-Ariz.), Orrin Hatch (R-Utah) and Mike Crapo (R-Idaho) say the cuts would cause some plans to close down and others to drop benefits.
Due to federal subsidies, the average Medicare Advantage beneficiary costs roughly 14 percent more than the Medicare fee-for-service beneficiary. The reform law cuts the subsidies by roughly $145 billion over the next 10 years, with a freeze on payments starting next year and cuts starting in 2012.
In an April report, CMS actuary Richard Foster said when the new provisions are fully phased in enrollment in Medicare Advantage plans will have dropped by about 50 percent.
In a Sept. 24 letter to Mr. Foster, the GOP Senators requested all estimate calculations and a further estimate of projected reductions in the plan's spending per member per month.
Read the Hill report on Medicare Advantage.
Read more coverage on Medicare Advantage:
- CMS Achieves 1% Cut in Medicare Advantage Premiums by Denying Rate Increases, Benefit Cuts
- Many Medicare Advantage Plans Wouldn't Qualify for Upcoming Quality Payments Based on Current Data
- CMS Suspends Medicare Advantage Enrollment, Fines Quality Health Plan