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Health secretary sides with insurers in funding debate
By Kevin Freking, Associated Press Writer
Saturday, March 24, 2007 | No comments posted.
WASHINGTON - The Bush administration reassured worried health insurance executives Thursday that it strongly opposes efforts to cut their payments and use the savings to expand a separate insurance program for children.
Health and Human Services Secretary Mike Leavitt said that cutting managed care payments to Medicare insurers is part of a broader effort to get federally funded universal health care.
Democratic lawmakers have listed the expansion of the State Children's Health Insurance Program as their top health priority this year. But the program would cost about $75 billion over five years - and triple current funding.
Many Democrats say some of that funding should come from the managed Medicare plans. Leavitt framed the debate by pitting the competitive private sector versus the public, but Democratic lawmakers say it's about helping poor children.
Rep. Pete Stark, D-Calif., said Wednesday that the government pays 12 percent more for managed care than for traditional Medicare.
“When private plans formally asked to join Medicare in 1982, they said they could provide Medicare's benefits better and cheaper than the government,” Stark said. “Fast forward 25 years, and we are losing money for every person who enrolls in a private plan.”
The hearing was the first on the Medicare Advantage program this year. But more are expected in the coming months as Democrats want to renew the children's insurance program before Sept. 30.
Health and Human Services Secretary Mike Leavitt said that cutting managed care payments to Medicare insurers is part of a broader effort to get federally funded universal health care.
Democratic lawmakers have listed the expansion of the State Children's Health Insurance Program as their top health priority this year. But the program would cost about $75 billion over five years - and triple current funding.
Many Democrats say some of that funding should come from the managed Medicare plans. Leavitt framed the debate by pitting the competitive private sector versus the public, but Democratic lawmakers say it's about helping poor children.
Rep. Pete Stark, D-Calif., said Wednesday that the government pays 12 percent more for managed care than for traditional Medicare.
“When private plans formally asked to join Medicare in 1982, they said they could provide Medicare's benefits better and cheaper than the government,” Stark said. “Fast forward 25 years, and we are losing money for every person who enrolls in a private plan.”
The hearing was the first on the Medicare Advantage program this year. But more are expected in the coming months as Democrats want to renew the children's insurance program before Sept. 30.
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