CMA Urges Elimination of Private FFS Medicare Advantage Plans
[Posted 06/07/07]

CMA has urged Congress to eliminate private fee-for-service plans from the Medicare Advantage Program, calling such plans “unwarranted insurance industry profit centers” that are siphoning-off valuable resources from the Medicare program at the expense of patients, physicians, and the taxpayers.

Private fee-for-service Medicare plans receive 20 to 50 percent more than fee-for-service physicians for providing the same services to Medicare beneficiaries. Big profit margins combined with weak oversight by the Medicare program have resulted in aggressive and deceptive sales practices and inefficient operations without any incentives to establish appropriate provider networks.

“These plans are not required to have adequate physician networks or meet any quality standards,” wrote Dr. Mahal in a letter to California Congressman Pete Stark, chairman of the powerful Ways and Means Health Subcommittee. “They are not providing value to patients and are allowed to hold physicians to untenable terms.”

Click here to read Dr. Mahal's letter.

Contact: Elizabeth McNeil, 415/882-3376 or emcneil@cmanet.org.

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