Today, U.S. Representatives Patrick E. Murphy (FL-18) and Kyrsten Sinema (AZ-09) led a group of over 45 House Democrats in urging the Department of Health and Human Services (DHS) to reconsider its proposed changes to payment and bidding models for Medicare Advantage Employment Group Waiver Plans (EGWPs). These plans cover nearly one-fifth of the 17 million seniors who rely on Medicare Advantage for their health coverage. The proposed changes could lead to funding cuts by as much as four percent. (Click here to view a copy of the letter and please find below the letter text as well as the list of additional co-signers).
Murphy is committed to protecting the benefits that seniors rely on for their health coverage, whether traditional Medicare or Medicare Advantage. According to America’s Health Insurance Plans (AHIP), 17 million Americans are enrolled in a Medicare Advantage plan, including 1.6 million Floridians. In February, Murphy joined with Congressman Brett Guthrie (KY-02) to lead a bipartisan letter with over 300 members of Congress to call on CMS to protect the Medicare Advantage program and the millions of seniors who rely on it for their health care coverage. Last year, Reps. Murphy and Guthrie also led a bipartisan letter with over 200 members of Congress in a successful effort to keep CMS from enacting proposed cuts to the Medicare Advantage program.
March 18, 2016
The Honorable Sylvia M. Burwell
U.S. Department of Health and Human Services
200 Independence Avenue SW
Washington, DC 20201
Dear Secretary Burwell:
We write to express our concerns regarding the proposed changes to the payment and bidding model for Medicare Advantage Employer Group Waiver Plans (EGWP) included in the Centers for Medicare and Medicaid Services (CMS) 2017 Advance Notice. The proposed changes could result in payment cuts of 3-4% to Medicare Advantage (MA) Retiree Coverage, negatively impacting the 3.3 million seniors who depend on this coverage for high quality affordable health care. We urge you to remove the proposed 3-4% payment cut to MA Retiree Coverage in the 2017 Final Notice scheduled to be released on April 4th.
Private and public employers, including state and local governments and labor unions, depend on MA Retiree Coverage to deliver superior care to their workforce. MA Retiree Coverage can improve health care for retirees by offering care coordination and disease management, comprehensive prescription drug coverage, and protections against out-of-pocket costs. The CMS proposed cut will likely result in increased out-of-pocket costs, reduced access to providers, and fewer health care options for seniors.
While we appreciate CMS’s efforts to improve the EGWP program, the networks provided by EGWPs make these plans different from other MA plans. Any changes to the bidding and payment process should follow a detailed analysis that illustrates how the quality of care for seniors will improve and costs to seniors will decrease. A new analysis from the actuarial firm Milliman estimates that total costs of these proposed cuts to the 3.3 million retirees with this coverage could be $870 million in 2017 alone. For millions of retirees on fixed incomes, increased costs would represent a significant hit to their financial peace of mind.
It is critical that the 3.3 million seniors enrolled in MA Retiree Coverage continue to have access to high quality, stable health care delivered by this option. We ask that you remove the proposed cut to MA Retiree Coverage to avoid negatively impacting seniors and employers by this proposal.
Patrick E. Murphy
Member of Congress
Member of Congress
Additional co-signers include: U.S. Reps. Pete Aguilar (CA-31), Brad Ashford (NE-02), Ami Bera (CA-07), Earl Blumenauer (OR-3), Corrine Brown (FL-05), Julia Brownley (CA-26), Cheri Bustos (IL-17), Tony Cárdenas (CA-29), Yvette Clarke (NY-09), Steve Cohen (TN-09), Jim Costa (CA-16), Joe Courtney (CT-02), Joe Crowley (NY-14), Henry Cuellar (TX-28), John Delaney (MD-06), Suzan DelBene (WA-01), Ted Deutch (FL-21), Tammy Duckworth (IL-08), Elizabeth Esty (CT-05), Lois Frankel (FL-22), Ruben Gallego (AZ-07), John Garamendi (CA-03), Gwen Graham (FL-02), Denny Heck (WA-10), Sheila Jackson Lee (TX-18), Dan Kildee (MI-05), Derek Kilmer (WA-06), Ann Kirkpatrick (AZ-01), Ann McLane Kuster (NH-02), John Larson (CT-01), Michelle Lujan Grisham (NM-01), Beto O'Rourke (TX-16), Donald Payne, Jr. (NJ-10), Scott Peters (CA-52), Collin Peterson (MN-07), Kathleen Rice (NY-04), Cedric Richmond (LA-02), Raul Ruiz (CA-36), Linda T. Sánchez (CA-38), Kurt Schrader (OR-05), David Scott (GA-13), Terri Sewell (AL-07), Eric Swalwell (CA-15), Mark Takai (HI-01), Filemon Vela (TX-34), Frederica S. Wilson (FL-24), and John Yarmuth (KY-03).