Balancing the books

Balancing the books

The Democrat and Chronicle, Rochester, N.Y.: When President Barack Obama began pursuing health care reform, he promised citizens that reform would reduce the high cost of health care.

For people in Medicare Advantage plans, who may face either rising premiums or a decrease in services, it may seem that the president isn’t keeping his word.

But Medicare Advantage plans now provide services to recipients that are being paid for by Medicare enrollees who aren’t benefiting. That’s not fair, and Congress was right to correct this wrong in the new reform law.

Medicare Advantage was created to give senior citizens the option to get coverage by private insurers, rather than Medicare. But over time, the Medicare payment policy shifted from one that produced savings to one that offered seniors extra benefits, like paying for eye glasses and health club memberships. Insurers are now being paid on average 14 percent more than what it costs Medicare to administer benefits.