Medicare Maneuvers, Part 3: The Insurer Showdown

July 16, 2008

Norm Wernet, Ohio State Director for the Alliance for Retired Americans, holds a sign to protest Medicare policy that hurts retiree, courtesy of Flickr It seems that Harry Reid gambled and won. In our previous two posts we described the battle being waged in Congress over the proposed 11% paycuts to Medicare physicians. After the Independence Day recess, the Senate Majority Leader and advocacy groups working on behalf of doctors and seniors - as well as informed and angry constituents - were able to put enough pressure on Senate Republicans to finally cross the aisle.

But party lines weren’t the real issue. The two sides squaring off in this debate were private insurers versus the average American. Why? Two words: Medicare Advantage.

As discussed in our July 2 post, Medicare Advantage came about when insurers convinced government that they were getting good at cutting spending on health care, and that maybe the government should learn from some of their tactics. Heck, they said, let’s just let insurers do the job themselves!

Medicare Maneuvers, Part 2: The Solution?

July 3, 2008

Capitol Building, D.C.As we wrote about yesterday, payment cuts for doctors who treat Medicare patients finally went into effect July 1. Unfortunately, the first legislative attempt to block the looming doctor payment cuts didn’t come until the end of 2007, and was part of the doomed legislation to improve public funding for children’s health care (see WhatIf’s piece on SCHIP). With the competing SCHIP bills finally all defeated this spring by Presidential vetoes and Republican opposition, there was little time left to deal with doctor payment cuts before the July deadline.

Medicare Maneuvers, Part 1: The Problem

July 2, 2008

Capitol Hill, Washington. D.C. Payment cuts for doctors who treat Medicare patients - which have been looming for about a year - finally went into effect yesterday. The payment cuts of 10.6% will affect the 600,000 doctors who treat Medicare patients, and thus millions of elderly and disabled Medicare enrollees who rely on them.

Maybe if you’re under 65 and/or not relying on government health care benefits you think this isn’t your problem. You’re wrong.

A little history (based on the writings of Jonathan Cohn):