U.S. Rep. Mike Bishop (R-MI) headed a bipartisan effort on Friday to avert proposed cuts to the Medicare Advantage (MA) program.
The Centers for Medicare and Medicaid Services (CMS) issued advance notice of a 3-4 percent cut to MA employer group waiver plans — also known as retiree coverage — in February. The cuts would lead to increased out-of-pocket expenses and fewer benefits for 300,000 retirees in Michigan alone.
Bishop and U.S. Rep. Debbie Dingell (D-MI) outlined concerns about how the proposed cuts would impact MA employer group waiver plans in a letter to Health and Human Services Secretary Sylvia Burwell.
“It is critical that the 3.3 million seniors throughout the country with MA retiree coverage continue to have access to high quality, affordable and coordinated health care options available through this option,” Bishop and Dingell wrote. “We ask that (Burwell) stop the proposed reductions to MA retiree coverage and preserve the healthcare security of these retirees by supporting the innovative and high quality care offered by this important program.”
The representatives said that the proposed cuts would jeopardize benefits that retirees depend on for their health and financial security, and they called on Burwell to stop the proposed cuts.
“Additionally, the proposal would greatly shorten the period of time that plan sponsors have to communicate with retirees regarding the benefit options available to them, and thus would compromise the ability of retirees to make informed decisions on their coverage,” Bishop and Dingell wrote. “Also, because of the cut in payments and difficulty in meeting obligations to communicate with retirees, some plan sponsors might leave Medicare Advantage, thereby diminishing the quality of care available to retirees.”
U.S. Reps. Candice Miller (R-MI), John Moolenaar (R-MI) and Fred Upton (R-MI) were among the legislators who signed the letter.