The policy, and politics, of Medicare Advantage

Reviewed by Emily Henderson, B.Sc.Mar 23 2023

The host

Julie Rovner KHN @jrovner.

Julie Rovner is chief Washington correspondent and host of KHN's weekly health policy news podcast, "What the Health?" A noted expert on health policy issues, Julie is the author of the critically praised reference book "Health Care Politics and Policy A to Z," now in its third edition.

Medicare Advantage, the private-sector alternative to original Medicare, now enrolls nearly half of all Medicare beneficiaries. But it remains controversial because — while most of its subscribers like the extra benefits many plans provide — the program frequently costs the federal government more than if those seniors remained in the fully public program. That controversy is becoming political, as the Biden administration tries to rein in some of those payments without being accused of "cutting" Medicare.

Meanwhile, President Joe Biden has signed a bill to declassify U.S. intelligence about the possible origin of covid-19 in China. And new evidence has emerged potentially linking the virus to raccoon dogs at an animal market in Wuhan, where the virus reportedly first took hold.

This week's panelists are Julie Rovner of KHN, Margot Sanger-Katz of The New York Times, Jessie Hellmann of CQ Roll Call, and Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico.

Panelists

Jessie Hellmann CQ Roll Call @jessiehellmann Joanne Kenen Johns Hopkins Bloomberg School of Public Health and Politico @JoanneKenen Margot Sanger-Katz The New York Times @sangerkatz

Among the takeaways from this week's episode:

• The Biden administration recently changed the formula used to calculate how much the federal government pays private Medicare Advantage plans to care for patients with serious conditions, amid allegations that many of the health plans overcharge or even defraud the government. Major insurers are making no secret about how lucrative the program can be: Humana recently said it would leave the commercial insurance market and focus on government-funded programs, like its booming Medicare Advantage plans.
• The formula change is intended to rein in excess spending on Medicare — a huge, costly program at risk of insolvency — yet it has triggered a lobbying blitz, including a vigorous letter-writing campaign in support of the popular Medicare Advantage program. On Capitol Hill, though, party leaders have not stepped up to defend private insurers as aggressively as they have in the past. But the 2024 campaign season could hear the parties trading accusations over whether Biden cut Medicare or, conversely, protected it.
• The latest maternal mortality rates released by the Centers for Disease Control and Prevention show the problem continued to worsen during the pandemic. Many states have extended Medicaid coverage for a full year after women give birth, in an effort to improve care during that higher-risk period. But other problems limit access to postpartum care. During the pandemic, some women did not get prenatal care. And after the fall of Roe v. Wade, some states are having trouble securing providers — including one rural Idaho hospital, which announced it will stop delivering babies.
• The federal government will soon declassify intelligence related to the origins of the covid pandemic. In the United States, the fight over what started the pandemic has largely morphed into an issue of political identity, with Republicans favoring the notion that a Chinese lab leak started the global health crisis that killed millions, while Democrats are more likely to believe it was animal transmission tied to a wet market.
• And in drug price news, Sanofi has become the third major insulin maker (of three) to announce it will reduce the price on some of its insulin products ahead of a U.S. government policy change next year that could have cost the company.

Plus, for "extra credit," the panelists suggest health policy stories they read this week that they think you should read, too:

Julie Rovner: Vice News' "Inside the Private Group Where Parents Give Ivermectin to Kids With Autism," by David Gilbert

Jessie Hellmann: The Washington Post's "Senior Care Is Crushingly Expensive. Boomers Aren't Ready," by Christopher Rowland

Joanne Kenen: The New Yorker's "Will the Ozempic Era Change How We Think About Being Fat and Being Thin?" by Jia Tolentino

Margot Sanger-Katz: Slate's "You Know What? I'm Not Doing This Anymore," by Sophie Novack

Also mentioned on this week's podcast:

• Coverage by KHN's Fred Schulte on Medicare Advantage: https://khn.org/news/author/fred-schulte/
• The New York Times' "Biden Plan to Cut Billions in Medicare Fraud Ignites Lobbying Frenzy," by Reed Abelson and Margot Sanger-Katz
• The CDC's "Maternal Mortality Rates in the United States, 2021," by Donna L. Hoyert

Credits

Francis Ying Audio producer Emmarie Huetteman Editor