Medicare News
| For Immediate Release: | Contact: |
| Friday, September 21, 2001 | CMS Office of Public Affairs 202-690-6145 |
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov. |
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STATEMENT OF TOM SCULLY, ADMINISTRATOR CENTERS FOR MEDICARE & MEDICAID SERVICES: PRELIMINARY STATUS OF THE MEDICARE+CHOICE PROGRAM FOR 2002
On behalf of the millions of seniors who are enrolled in the Medicare+Choice program, the Centers for Medicare & Medicaid Services (CMS) is committed to addressing the problems that have caused disruptions to the program. We have taken several steps over the course of the last few months to do what we are able to keep health plans in the program. We ask Congress to join us in this task to stabilize the program in the short term and work with us to strengthen and modernize Medicare for the long term.
While all beneficiaries will continue to be covered by Medicare, initial analysis of status reports to CMS by current Medicare+Choice plans show that 90 percent of the 5.6 million Medicare beneficiaries enrolled in the program will be able to continue in their Medicare+Choice plan in 2002.
A total of 58 Medicare+Choice contracts are either withdrawing (22 contracts) from the program or reducing their service areas (36 contracts), affecting approximately 536,000 Medicare beneficiaries, or 10 percent of Medicare+Choice enrollees. Most affected enrollees will have another private health plan to select from in their area. However, 38,000 will have no option but to return to the Medicare fee-for-service program. Just over 50,000 will have access to a private fee-for-service plan. The remainder will have access to coordinated care plans and all beneficiaries will continue to be covered by the full benefits of the Medicare program.
Though we are disappointed with the further program contraction, the number of beneficiaries who are affected by the decisions is smaller than many had predicted, and lower than the number affected last year (934,000). However, despite CMS' best efforts to slow the number of withdrawals, it is apparent that there needs to be additional modifications to the Medicare+Choice program.
In an effort to help stabilize the program, HHS Secretary Tommy G. Thompson has already announced a number of improvements to reduce administrative burdens on health plans, make it easier for employers to contract with Medicare+Choice plans for their retirees' health care, and enable plans to develop innovative products.
