In light of the news that the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations is hosting the hearing “Protecting America’s Seniors: Oversight of Private Sector Medicare Advantage Plans” on June 28. Mark E. Miller, Executive Vice President of Health Care for Arnold Ventures, issued the following statement:
“Private managed care plans now account for nearly half of Medicare enrollment and spending. It is long overdue for the Congress and the Administration to address a range of design flaws with the Medicare Advantage program as well as program integrity problems with the plans. The sustainability of the Medicare program and the impending threat to the Part A trust fund demand attention to Medicare Advantage.
The fact is that in 35 years, in aggregate, managed care plans have never produced savings for Medicare.
Part of the problem is the design of the payment system – that Congress should address. The plans have not always been good business partners and have abused it to increase their profits – taking advantage of the risk coding and the quality bonus system, for instance.
We are encouraged that the Energy and Commerce committee is exercising oversight of Medicare Advantage. Like any publicly financed program it needs to be managed and plans should be held accountable for providing value to the taxpayer and to beneficiaries. We support managed care as an option, we do not support overpaying for that option.”
AV sent a letter to committee leadership in advance of the hearing. Read AV’s letter here.