"Private Medicare Plans May Be Hazardous to Your Health, And Your Pocketbook, Says Center for Medicare Advocacy

The Government Accountability Office says in a report today that private Medicare plans often cost beneficiaries more than traditional Medicare.

According to Judith Stein, executive director of the Center for Medicare Advocacy, "Traditional Medicare is a proven, cost-effective way to guarantee access to health care for older people and people with disabilities. In fact, traditional Medicare is a model for a fair, uniform, and cost-effective health insurance program."

Instead of pouring money into private plans that end up costing beneficiaries more, Stein says, "The administration should cut the $150 billion subsidies being paid to private Medicare plans. These earmarks for private corporations undermine traditional Medicare, threaten its future, burden taxpayers, and don't better serve beneficiaries."

According to Stein, "In order to sustain traditional Medicare, money should be spent on necessary health care for older and disabled people rather than profits for private industry. Instead of giving $150 billion to corporations, give it back to taxpayers and sick people."

The Center for Medicare Advocacy helps thousands of Medicare beneficiaries each year. We see first-hand how Medicare eases financial and emotional stress on families and beneficiaries and makes a difference in people's lives. Furthermore, private plans too often use unethical tactics to sign seniors onto their plans, and though they claim to have lower costs and extra benefits, the GAO report makes it clear that traditional Medicare is usually far superior. Those in private plans may face higher costs, for example, for cancer drugs, mental health services, home health, and nursing home care - exactly when people need Medicare most."

Stein says, "As the GAO report makes clear, people need to be careful before signing up for a private Medicare plan. The GAO report is an expensive cautionary tale, for taxpayers and beneficiaries alike; look before you leap."

People who are navigating the Medicare maze can get help from the Center for Medicare Advocacy (www.medicareadvocacy.org).


Judith Stein is available for comment on the GAO report.