What market is he talking about?

The House Ways and Means Health Subcommittee has been holding hearings on whether to reduce payments to Medicare Advantage plans. These so-called managed care plans cost on average 12% more than fee for service Medicare! Cutting them would be a good idea. The Congressional Budget Office says just reducing expenditures to the level of regular Medicare would save $65 billion over a five year period.

Subcommittee Chair Pete Stark and Senate Finance Committe Chair Max Baucus had the bright idea to use the money to pay for an extension of SCHIP, (the State Children’s Health Insurance Program).  But HHS Secretary Mike Leavitt thinks that’s a bad idea:

Cutting Medicare Advantage payments would lead to a…

government-run, one-size-fits-all plan. There are those who want the government to do the market’s job. The President and I are for competition. If the world has learned anything from the 20th century, it is that the marketplace beats government at controlling costs and delivering value

What a bunch of baloney. I think markets and competition are great, too. But the reality is that the government is paying the premiums here. What kind of a market is that?

Meanwhile, ever-expanding Medicare benefits go to rich seniors while kids suffer.

March 23, 2007

One thought on “What market is he talking about?”

  1. Old Congressman Pete Stark…of 35 years plus in Congress is not only an atheist, but he is just an ‘old fart’ so to speak who wants to tick off the world. He rants and raves at his constituents and is not a nice guy…he’s not a “poster child” that any organization would want to represent them…atheists or otherwise. Check out where he denigrated a constituent who just returned from an overseas deployment to Kosovo…the soldier wrote his congressman (Pete Stark) and got this angry insulting voicemail back. (See the link to the Fox News video below).

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