Medicare advantage cuts pose political threat

Apr 8 2014

The cuts to Medicare Advantage, expected to be included in planned 2015 payments to be unveiled Monday, end what proponents call a windfall to insurers. But they have drawn protests not just from insurers but from Democrats who fear the GOP will use them as political fodder in the midterm elections.

The Wall Street Journal: Some Democrats Fight Obama Over Medicare
More than two dozen Democrats are fighting the Obama administration over planned cuts to private plans offered in Medicare, tied in part to the 2010 health overhaul, which could divide the party on health care in the run-up to this year's midterm elections. The cuts to Medicare Advantage insurers, which are expected to be included in planned 2015 payments to be unveiled Monday, have drawn increasingly vocal opposition from Democrats who fear that insurers will use the cuts to justify higher premiums or fewer options for enrollees (Peterson and Mathews, 4/6).

The Hill: Obama's New Healthcare Dilemma
Democrats are battling the White House over proposed cuts to Medicare Advantage, creating a new divide on healthcare just as the party had begun to rally around ObamaCare's 7.1 million enrollees. The issue threatens the newfound momentum Democrats have on healthcare after a late surge of ObamaCare enrollees surprised and electrified a party that had been beaten down after months of bad news associated with the healthcare law's rollout (Easley, 4/6).

Kaiser Health News: Decoding The High-Stakes Debate Over Medicare Advantage Cuts
The rate change, part of the Affordable Care Act, is the next step in winding down a subsidy that pays Medicare Advantage plans substantially more than what traditional Medicare costs. Proponents say the move will end what they call an industry windfall and pressure insurers, hospitals and doctors to deliver care more efficiently. The industry, which maintains the cuts will raise costs and reduce consumer benefits, has launched a massive national counterattack, running numerous "seniors are watching" ads, getting beneficiaries to pepper politicians with calls and letters, and lobbying the administration to back off (Hancock, 4/7).