Republican leaders seek to curb cuts to Medicare program

Republican House and Senate leaders are clamoring for President Obama to repeal a nearly 1 percent proposed cut to insurer payments for a popular Medicare program.

“We are disappointed with your administration’s record on Medicare,” according to a recent letter signed by House Speaker John Boehner and Senate Majority Leader Mitch McConnell. “Instead of working with Congress to strengthen the program and protect seniors, your administration has ignored its promise that seniors can keep the plans they have and like.”

Republicans want the administration to curb announced cuts to insurer payments for Medicare Advantage, a program that provides access to private health plans and is used by one-third of Medicare enrollees.

The proposed payment policies released by the Centers for Medicare and Medicaid Services on Feb. 20 call for a reduction of payments by 0.9 percent. The agency noted that some insurers would see a boost of almost 1.1 percent over current payment levels after taking into account changes to coding for payments.

Payment cuts have occurred over the past several years to Medicare Advantage. The program was hurt by sequestration and a 3 percent premium tax that went into effect last year.

The letter noted that the proposed cut will “further reduce seniors’ choices while increasing their costs.” It was signed by House and Senate leadership and by several other high-ranking members.

The letter follows another one sent recently by 53 Democratic and Republican senators to the Centers for Medicare and Medicaid Services’ director calling for no further cuts to the program.

The insurance industry appears to be pushing back as well.

The Better Medicare Alliance, which counts major insurers Humana and Aetna among its members, announced Wednesday it plans to launch an ad campaign to galvanize support against the cuts. The alliance also represents doctors and hospitals.

CMS wants comments on the proposed rates by next week and will announce final rates on April 6.

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