I think it is VERY likely the congress will cut Medicare Advantage subsidies.
Which does little, if anything, to help the overall situation. MA provides benefits that straight Medicare doesn't. You started off, months ago, claiming the problem is Medical costs too high as a percent of GDP. Now, you're effectively saying, "Well, that doesn't matter; what's important is that we shift the burden to private insurance companies and ultimately, to the beneficiary" -- who will have to just purchase coverage from private insurance companies to pick up the difference.
In principal, I think it is fine to cut MA subsidies, with the understanding that you are also going to see benefit cuts which defeats the purpose of MA. So, these individuals are going back to straight medicare with a supplement. You haven't DONE anything.
What CBO is doubting, and Elmendorf has specifically said so -- is that Congress can eliminate waste, fraud and abuse -- they haven't been able to do so yet, and that's why he questioned it. The MA part is simply a matter of making law but it doesn't do anything to solve the problem you articulated months ago. |
