Medicare ‘Advantage’? Private carve-outs cost more

Private carve-outs such as Medicare Advantage drive up costs.

Bad policy should be bad politics.

Nevertheless, a group of members of Congress recently persisted in promoting a wasteful private-sector subsidy that undermines the highly successful Medicare program.

The Iowa Hospital Association, in a recent Twitter post, noted the letter from 58 House members against President Obama’s nomination of Dr. Donald Berwick to head the Center for Medicaid and Medicare Services. The letter claims that health reform could jeopardize so-called “Medicare Advantage” programs.

Public vs pvt insuranceWe can only hope.

As shown in the graph at right, public-sector health insurance provides better bang for the buck than privateĀ  insurance.

Moreover, specifically with regard to Medicare Advantage, substantial evidence and expert analysis has demonstrated the parasitic effects of such programs on traditional Medicare.

See an excellent primer that breaks down the problems with Medicare Advantage plans and why it is that these private carve-outs from Medicare drive up costs and make it more difficult to serve Americans who depend on Medicare.

Posted by Mike Owen, Assistant Director

Author: iowapolicypoints

The Iowa Policy Project is a nonprofit, nonpartisan organization that provides research and analysis to engage Iowans in state policy decisions. We focus on tax and busget issues, the Iowa economy, and energy and environmental policy. By providing a foundation of fact-based, objective research and engaging the public in an informed discussion of policy alternatives, IPP advances effective, accountable and fair government.

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