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Medicare News

For Immediate Release: Contact:
Tuesday, March 26, 2002 CMS Office of Public Affairs
202-690-6145

For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov.

MANAGED CARE PLAN OFFERED TO MEDICARE BENEFICIARIES IN BROWARD, PALM BEACH COUNTIES, FLA.

The Centers for Medicare and Medicaid Services (CMS) today approved a request by United HealthCare Insurance Company of Illinois to offer managed care coverage to Medicare beneficiaries in Broward and Palm Beach counties along Florida's southeastern coast.

United HealthCare Insurance Company of Illinois, based in Chicago, can begin on April 1, 2002, to enroll beneficiaries in the two counties, including the cities of Fort Lauderdale, Hollywood, Palm Beach and West Palm Beach. About 500,000 Medicare beneficiaries live in the managed care organization's newly approved service area.

"We are pleased that United HealthCare Insurance Company of Illinois has decided to offer this new option to Medicare beneficiaries in Broward and Palm Beach counties," HHS Secretary Tommy G. Thompson said. "The reality is, Medicare should provide all seniors - no matter where they live - with better health insurance options, including prescription drug coverage and preventive care. The President's principles for strengthening and modernizing Medicare will move us closer to that goal."

"We want to make sure all Medicare beneficiaries, whether in a Medicare+Choice plan or fee-for-service, are receiving the highest quality health care," CMS Administrator Tom Scully said. "We are doing more to guarantee that beneficiaries understand the

Medicare coverage options available to them. We also are reminding beneficiaries of the need to work closely with the doctors and other health care providers that give them medical care."

The plan, which will operate as EncorEncore, will give another health care option to the beneficiaries who live in the two counties. Broward now has eight Medicare managed care plans and Palm Beach County has six plans.

In his recent budget proposal, President Bush said the current Medicare+Choice system for paying private plans is not giving beneficiaries the health care options they deserve. Annual increases in Medicare+Choice funding have failed to reflect rising health care costs, leading to unreliable options and reduced benefits for seniors. Under the President's proposal, all Medicare+Choice plans will receive payment increases in 2003.

Medicare+Choice HMOs and fee-for-service plans are available where private companies choose to offer them. Currently, about 5.6 million Medicare beneficiaries -- out of a total of nearly 40 million aged and disabled Americans -- have enrolled in Medicare HMOs. Original fee-for-service Medicare, currently chosen by more than 34 million beneficiaries, is available to all beneficiaries.

Congress created Medicare+Choice in the Balanced Budget Act of 1997 to expand the types of health care options available to Medicare beneficiaries, who in addition can now receive new preventive benefits and patient protections. There also is a far-reaching consumer information program that includes a national toll-free phone number -- 1-800-MEDICARE (1-800-633-4227, or TTY/TDD, at 877-486-2048 -- an Internet site -- www.medicare.gov -- and a coalition of more than 200 national and local organizations to provide seniors more information.

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