Commonwealth Fund Study Based on Flawed Methodology, Outdated Data
WASHINGTON, Nov. 30 /PRNewswire/ -- A new report from the Commonwealth
Fund makes inaccurate comparisons between Medicare Advantage (MA) payment
rates and fee-for-service (FFS) costs which lead to highly misleading
estimates about the Medicare Advantage program. The report's findings are
based on flawed analyses that overestimate the difference between MA
payment rates and Medicare FFS costs, neglect the longer term investment
Congress attributed to certain features of the program, and fail to
recognize the value health plans provide to beneficiaries and taxpayers.
Karen Ignagni, President and CEO of America's Health Insurance Plans issued
the following statement in response to the report:
(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )
"The Commonwealth Fund study is based on flawed methodology and
disregards recent changes to the program that have generated additional
savings for Medicare beneficiaries and the federal government. For example,
by using 2005 as the basis of its analysis, the study does not consider
approximately $2.1 billion in savings generated by Medicare Advantage plans
for the federal government in 2006.
"Moreover, this study loses sight of the commitment that Congress made
to ensure all beneficiaries a choice of plan and to encourage program
savings through greater competition. The Centers for Medicare & Medicaid
Services has reported that MA beneficiaries are saving an average of $82
per month compared to what they would pay in the Medicare FFS program.
Medicare beneficiaries are thus seeing aggregate savings of more than $6.8
billion annually.
"MA plans are making significant contributions to this vital public-
private partnership that provides coverage for 7 million beneficiaries
today. The Medicare Part D program is costing billions of dollars less than
originally projected, due in large part to private plan competition that
has resulted in lower premiums for beneficiaries. Additionally, MA plans
continue to demonstrate their value to Medicare beneficiaries by providing
better benefits at lower out-of-pocket costs."
America's Health Insurance Plans - Providing Health Benefits to
More Than 200 Million Americans
SOURCE America's Health Insurance Plans
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Related links:
http://www.ahip.org/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Mohit Ghose of America's Health Insurance
Plans, +1-202-778-8494
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