In an effort to crack down on the misleading practices of Medicare Advantage providers, Democratic Reps. Mark Pocan, Ro Khanna, and Jan Schakowsky reintroduced legislation Tuesday that would ban private insurers from using the “Medicare” label in the names of their health plans.
The legislation, titled the Save Medicare Act, would formally change the name of the Medicare Advantage program to the Alternative Private Health Plan, an attempt to make clear to seniors that the plans are run by private entities such as Anthem, Humana, Cigna, and UnitedHealthcare.
“Only Medicare is Medicare,” Pocan (D-Wis.) said in a statement. “It is one of the most popular and important services the government provides. These non-Medicare plans run by private insurers undermine traditional Medicare. They often leave patients without the benefits they need while overcharging the federal government for corporate profit.”
Khanna (D-Calif.) declared that “it’s time to call out ‘Medicare Advantage’ for what it is: private insurance that profits by denying coverage and the name is being used to trick seniors into enrolling.”
“That’s not right,” he added. “This bill will end the scam by preventing private insurers from profiting off the Medicare brand. Our focus should be on strengthening and expanding real Medicare.”
The bill, which faces long odds in the Republican-controlled House, was introduced as GOP lawmakers push for cuts to traditional Medicare as part of their broader austerity campaign.
It also comes as the Biden administration is moving ahead with a Medicare privatization scheme known as ACO REACH, a pilot program that critics warn could fully engulf traditional Medicare in a matter of years.
The Democratic trio’s legislation does not specifically address ACO REACH, opting to zero in on Medicare Advantage plans that are notorious for denying necessary care to vulnerable seniors and overbilling the federal government.
The measure would impose a $100,000 penalty each time a private insurer uses the Medicare name in the title of one of their plans.
Earlier this week, the Biden administration proposed a new rule that would strengthen audits of Medicare Advantage plans, which are paid an annual per-person rate by the federal government. Recent investigations have exposed how Medicare Advantage plans frequently overcharge the government by making patients appear sicker than they are, resulting in a higher payment.
The federal government currently expects to pay Medicare Advantage providers more than $6 trillion over the next eight years.
Medicare Advantage has grown rapidly over the past decade, with more than 28 million people in the U.S. enrolled in such plans as of 2022. MA plans often provide coverage for hearing, vision, and dental—benefits not offered by traditional Medicare, despite the efforts of progressive lawmakers to expand the program.
Originally published at Commondreams.org.