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Tomlinson: Biden moves forward with Trump Medicare privatization plan
Chris Tomlinson, Staff writer
Nov. 8, 2021
No one should be surprised the Trump administration hatched a plan to put private insurance companies in charge of Medicare. What’s shocking is how President Joe Biden is moving forward with it.
The 50-year-old, government-operated health program for the elderly will slowly and irrevocably end up managed by for-profit insurers under the Global and Professional Direct Contracting Model. The Center for Medicare Services says the program will increase “access to innovative, affordable care while maintaining all original Medicare benefits.”
Wall Street expects it will generate billions in new dividends for health care companies. Critics warn seniors will find it harder to obtain care, and taxpayers will end up paying more than ever.
TOMLINSON’S TAKE: Democrats no better at controlling health costs, Big Pharma wins again
This is not the first effort to hand over Medicare patients to private companies in the name of cost-saving. Recently, I explained how Medicare Advantage programs were failing to save taxpayer money and leaving many enrollees disappointed. But while seniors can opt out of Medicare Advantage, Direct Contracting will involuntarily put them in the same boat or a potentially leakier one.
...
A few years ago, I praised the Accountable Care Organization/Medicare Advantage model because it encouraged providers to form teams of primary care providers and specialists. Instead of paying fee-for-service, Medicare paid an annual rate for each patient. If the team saved money by keeping the patient healthy, it kept some of the windfalls.
Medicare Advantage, though, drove up costs to taxpayers instead of reducing them. Depending on the program, patients also ended up paying more in deductibles and co-payments than they would have under traditional Medicare.
Despite this track record, the Biden administration paid private companies to take over 30 million traditional Medicare patients in 38 states on Jan. 1 this year. Millions more will be transferred to Direct Contracting in 2022.
Most Direct Contracting companies are investor-backed, for-profit corporations, according to government data. Most have experience with Medicaid Advantage, and Medicare officials expect them to impose similar cost-cutting steps. But can they cut enough to cover their profits and save taxpayers’ money?
The business opportunity looks vast....
...
Next year, millions more Americans will find themselves in privatized Medicare, and most will never know what happened.
Chris Tomlinson writes commentary about business, economics and politics.
twitter.com/cltomlinson
chris.tomlinson@chron.com
Tomlinson: Biden moves forward with Trump Medicare privatization plan
Chris Tomlinson, Staff writer
Nov. 8, 2021
No one should be surprised the Trump administration hatched a plan to put private insurance companies in charge of Medicare. What’s shocking is how President Joe Biden is moving forward with it.
The 50-year-old, government-operated health program for the elderly will slowly and irrevocably end up managed by for-profit insurers under the Global and Professional Direct Contracting Model. The Center for Medicare Services says the program will increase “access to innovative, affordable care while maintaining all original Medicare benefits.”
Wall Street expects it will generate billions in new dividends for health care companies. Critics warn seniors will find it harder to obtain care, and taxpayers will end up paying more than ever.
TOMLINSON’S TAKE: Democrats no better at controlling health costs, Big Pharma wins again
This is not the first effort to hand over Medicare patients to private companies in the name of cost-saving. Recently, I explained how Medicare Advantage programs were failing to save taxpayer money and leaving many enrollees disappointed. But while seniors can opt out of Medicare Advantage, Direct Contracting will involuntarily put them in the same boat or a potentially leakier one.
...
A few years ago, I praised the Accountable Care Organization/Medicare Advantage model because it encouraged providers to form teams of primary care providers and specialists. Instead of paying fee-for-service, Medicare paid an annual rate for each patient. If the team saved money by keeping the patient healthy, it kept some of the windfalls.
Medicare Advantage, though, drove up costs to taxpayers instead of reducing them. Depending on the program, patients also ended up paying more in deductibles and co-payments than they would have under traditional Medicare.
Despite this track record, the Biden administration paid private companies to take over 30 million traditional Medicare patients in 38 states on Jan. 1 this year. Millions more will be transferred to Direct Contracting in 2022.
Most Direct Contracting companies are investor-backed, for-profit corporations, according to government data. Most have experience with Medicaid Advantage, and Medicare officials expect them to impose similar cost-cutting steps. But can they cut enough to cover their profits and save taxpayers’ money?
The business opportunity looks vast....
...
Next year, millions more Americans will find themselves in privatized Medicare, and most will never know what happened.
Chris Tomlinson writes commentary about business, economics and politics.
twitter.com/cltomlinson
chris.tomlinson@chron.com
