That Happened!

New York - Studies have found that private Medicare plans have added costs and have not produced a lot of gains. Approximately one quarter of all beneficiaries have private health insurance plans. These private health insurance plans have increased the costs that come with the plan. The health care that is being offered has not improved despite the increase in costs.

Approximately 10.1 million people have enrolled in private Medicare plans in the last five years. This is because the plans are now available in many different regions all over the country.

The number of people enrolling in private fee for service plans has increased from twenty six thousand in 2003 to 2.3 million in 2006. These private fee for service plans are similar to Medicare plans but they do not do a good job at coordinating the health care that the participants receive.

Growth in private plans have driven up the costs of private Medicare plans because the government pays thirteen percent more than what it would for the same services in a traditional Medicare program.

Health care is essential in the United States of America. People need to get their money’s worth when they enroll in a private health care plan. These studies show us that the government and taxpayers are not getting a lot of benefits from their investment in the Medicare program.

Medicare paid private plans ninety five percent of the projected cost for each beneficiary in traditional Medicare. This was supposed to help make the programs more efficient and save money. It was also supposed to better coordinate the health care that the plan participants were receiving.

Private insurance plans have become very popular because many times they offer health care, vision care, and dental care. Many people need these types of health care benefits because paying out of pocket for all of these health related expenses can be very expensive.

Congress has continuously increased payments to private plans. This is supposed to help them enter more markets so that there is more competition within the market. This would help to lower health care costs for the government and taxpayers.

Beneficiaries can choose from as many as thirty five private Medicare advantages plans in each county. This is a huge selection to choose from. Because these private plans keep getting increased payments they do not need to be efficient in order to offer additional health benefits such as vision and dental care.

Payments to health organizations are twelve percent higher than what the government would pay to write the same beneficiaries in traditional Medicare. This is not a cost savings at all because you could get the same beneficiary cheaper by using a traditional Medicare program. Payments to private fee for service plans were seventeen percent higher.

The government needs to do something to help stop private plans from overcharging the government and taxpayers. If something is not done then Medicare programs could disappear because they are becoming so expensive. People need coordinated care and reasonably priced health insurance plans. Hopefully, President Elect Barack Obama and his administration will be able to help make the necessary changes to the Medicare program.