Republicans have generally supported Medicare Advantage plans, because they involve private insurers paid by Medicare. But Sen. Orrin Hatch (R-Utah) and Rep. Dave Camp (R-Mich.) said the extra funds may simply be “a thinly veiled use of taxpayer dollars for political purposes.”
Medicare Advantage plans were expected to pass on the planned cuts to their enrollees. This would have annoyed many Medicare beneficiaries, a politically important constituency that has been turning against the healthcare reform law.
The administration, however, said the reason for the bonuses is quality-improvement, not politics, and the program will be evaluated as it goes along. The new funds will go to hundreds of Medicare Advantage plans who would not have gotten quality bonuses because they were rated average.
The reform law has cut $145 billion in funding over 10 years from Medicare Advantage, partly to correct overpayments to those plans relative to the fee-for-service program. The cuts start off slowly in 2012 and build up.
Read the Washington Times Report on Medicare.
Read more coverage of Medicare Advantage plans:
– Excess Costs of Medicare Advantage Plans Declining
– Sebelius: GOP Defunding Could Halt Medicare Advantage
– Error Rate Makes Medicare Advantage Ripe for New RAC Program
