Stop the Fleecing of Medicare!

In the last few years, private insurance companies have been siphoning billions of dollars from Medicare and making big profits at the expense of senior citizens. That’s because the government now pays private "Medicare Advantage" health plans much more to cover seniors than it costs Medicare to serve them in the original program.

The U. S. government now spends, on average, between 10% and 19% more on Medicare Advantage plans than it spends on seniors in original Medicare. The money comes directly from taxpayers’ pockets and seniors’ Part B premiums. Medicare Advantage overpayments are draining the Medicare Trust Fund and pushing up the date of its impending shortfall.

Currently Congress is considering legislation that would create a level playing field between Medicare and private plans. Insurance companies are trying to make this look like an effort to cut Medicare benefits when, in fact, it’s an effort to save Medicare by preventing huge giveaways to private insurers. AFSCME is asking you to contact your U. S. Senator and two U.S. Representatives TODAY, and urge them to rollback the overpayments.

Sample Letter for Campaign

Subject: Stop the Fleecing of Medicare!

Dear [ Decision Maker ] ,

As a constituent and a retiree, I'm urging you to support legislation that establishes a level playing field between Medicare Advantage plans and the original Medicare program. Currently, the government spends far more on private plans that replace Medicare coverage than it spends on seniors in original Medicare.

These private-plan subsidies - which are paid with taxpayer dollars and beneficiaries' Part B premiums - are draining the Medicare Trust Fund and hastening its impending shortfall. We should stop boosting company profits, roll back the subsidies, and use the savings to help low- and moderate-income Medicare beneficiaries, while expanding health coverage for uninsured children.

I urge you not to continue wasting precious health care dollars. Please ask private plans to compete on a level playing field by paying Medicare Advantage plans the equivalent of costs under the original program. Thank you.

Sincerely,

Campaign Launched:
July 12, 2007

Background Information

Stop the Fleecing of Medicare!

In the last few years, private insurance companies have been siphoning billions of dollars from Medicare and making big profits at the expense of senior citizens. That’s because the government now pays private health plans much more to cover seniors than it costs Medicare to serve them in the original program.

Congressional leaders pushed through the higher payments in 2003, as part of their plan to privatize Medicare and Social Security. They thought higher payments would attract more insurers and enable private health plans to offer extra benefits to attract more Medicare beneficiaries. These so called “Medicare Advantage” plans replace Medicare coverage with private insurance (they are not Medicare supplements). When they offer “extra” benefits in one area, they often reduce benefits or raise co-pays somewhere else.

The U. S. government now spends, on average, between 10% and 19% more on Medicare Advantage plans than it spends on seniors in original Medicare (most seniors continue to participate in the original program). The money comes directly from taxpayers’ pockets and seniors’ Part B premiums. Medicare Advantage overpayments are draining the Medicare Trust Fund and pushing up the date of its impending shortfall.

To avoid disaster for Medicare and treat all beneficiaries fairly, AFSCME and our senior citizen-group allies are seeking a level playing field between Medicare and private plans. Insurance companies should not be paid more to deliver care – especially when the law lets them stack benefits in order to attract the healthiest, most profitable seniors. The more money we spend subsidizing private insurance, the less there will be for traditional Medicare.

Currently Congress is considering legislation that would create a level playing field. Insurance companies are trying to make this look like an effort to cut Medicare benefits when, in fact, it’s an effort to save Medicare by preventing huge giveaways to private insurers. AFSCME is asking you to contact your U. S. Senator and two U.S. Representatives TODAY, and urge them to rollback the overpayments.