Another ObamaCare Concession

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The White House has apparently decided that it won't enforce the unpopular parts of its health-care plan until after the 2012 election. The latest evidence is its decision not to slash Medicare Advantage, the program that Democrats hate because it lets seniors choose private insurance options.

Last Friday, Health and Human Services released its annual "call letter," which introduces the formula that will set Medicare rates for 2012. Out of nowhere, per capita Medicare Advantage payments will increase by 1.6% on average. The update was 0% for 2011, and most Wall Street analysts were forecasting a negative update for the coming year, given that ObamaCare cuts $136 billion over a decade and indirectly steals another $70 billion through such payment adjustments.

Would this be the same Medicare Advantage that candidate Barack Obama vowed to eliminate, saying in 2007 that "We shouldn't be rewarding the insurance industry for deceiving and defrauding our seniors"? And would this be the same program that Democratic Congressman Pete Stark says is evidence that "Medicare privatization trumps moral values" for Republicans? Why yes, it would.

...snip...

Yet now the White House's more immediate goal is evading any near-term blame when the seniors who like the coverage they have now are forced to take a bath. The funding boost for Advantage is another temporary concession to the public mood, much like the hundreds of waivers HHS has issued that exempt businesses from certain mandates so they don't dump coverage.

The other goal is to defuse a potent GOP argument against ObamaCare that persuaded many voters. A year-long reprieve for a valuable program is useful, but if the White House isn't even bothering to defend its core convictions when they cause political problems, wouldn't it be better not to destroy Medicare Advantage in the first place?

Review & Outlook: Another ObamaCare Concession - WSJ.com
 
The person in the White House, no matter how inept they are, has the upper hand.

They can manipulate the press, manipulate sound bites, send their message direct and unfiltered ("fireside chats", Twitter, Facebook, web site, etc) and pretty much get away with anything.
 
The person in the White House, no matter how inept they are, has the upper hand.

They can manipulate the press, manipulate sound bites, send their message direct and unfiltered ("fireside chats", Twitter, Facebook, web site, etc) and pretty much get away with anything.

And this administration and President WILL do and say ANYTHING!
 
The only reason these cuts existed in the first place was to be able to say that providing health care to 10's of millions of people wouldn't raise the deficit, as evidenced by the CBO scoring. Even the CBO said they didn't believe these cuts would really happen, but they were forced to score with them.

so, yes, 10 years of taxes to pay for 6 years of benefits originally almost worked out. That is not even close nowadays.

Dan
 
So assuming Obama got re-elected anyone wanna bet what would happen say November 5th after Obama has won his last election?
 
Is Medicare Advantage cheaper because the private companies are able to do a better job than the government or is it cheaper because they have younger insureds?

Do they insure more 65-year-olds than 85-year-olds as a percentage when compared to Original Medicare and Medi-gap?
 
Is Medicare Advantage cheaper because the private companies are able to do a better job than the government or is it cheaper because they have younger insureds?

MA plans tend to attract those who are broke and/or healthy. Broke people in general are in worse health than those with more money but this may be offset some by the healthy folks who take few or any meds and rarely visit the doc.

As to the cost, DC pays the MA carrier a "stipend" equal to their expected cost of claims for basic Medicare benefits. This amount is adjusted for the sick ones who have ESRD, cancer, etc.

Carriers take these funds and design policies that fit the mandated benefits and then project how much to charge for the added benefits of MA plans over and above traditional Medicare. The premiums billed to the participant (in some cases MA premiums can be $0) are offset by deductibles, copays and coinsurance (just like traditional major med).

On a month to month basis, these plans SEEM to be lower in cost but that dream is short lived once the beneficiaries health changes.

Do they insure more 65-year-olds than 85-year-olds as a percentage when compared to Original Medicare and Medi-gap?

Roughly 20% of those on Medicare have MA plans. This number has been growing over the last few years and DC wants them back under their thumb.
 

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