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St. Paul, Minn. — Minnesota seniors are penalized through
higher Medicare premiums and fewer benefits due to the way
the federal government pays for Medicare, according to the
Minnesota Council of Health Plans.
In a statement to the Bipartisan Commission on the Future
of Medicare, the federal advisory panel charged with recommending
ways to keep Medicare solvent past 2010 that met in Minnesota
yesterday, Michael Scandrett, executive director of the council
said, "Minnesotans are frustrated by being short-changed
on Medicare. As a result of existing federal policies, Minnesota
seniors have fewer Medicare choices, and more limited benefits,
than seniors in other states."
The Health Care Financing Administration reports that Minnesota
reimbursement rates under Medicare are about 21 percent below
the national average. Medicare reimbursement rates are based
on historical per capita spending within a county. Counties
that have historically spent more are rewarded, whereas states
like Minnesota, that have a more efficient health care system
receive fewer Medicare dollars per person. Rates do not reflect
variations in the cost of providing Medicare benefits or variations
in health status.
Minnesota Medicare Coverage Compared
to Florida Coverage
| |
Premium |
Prescription Drugs |
Eye Glasses |
Dental Care |
Hearing Aids |
| Miami, Fla. |
$0 |
$0 co-pay, no annual cap |
$150/year |
Basic coverage, no co-pay |
$700/three years |
| Minneapolis, Minn. |
$60/month |
Not covered |
Not covered |
Preventive only, $5 co-pay |
Not covered |
Note: sample plans include Humana (Miami,
Fla.) and Medica (Minneapolis, Minn.)
In addition to higher premiums and lower benefits, Medicare
seniors often have fewer choices in terms of Medicare plans.
"Medicare enrollees in some other parts of the United
States are aggressively courted by HMOs offering a host of
low-cost supplemental benefits such as coverage of prescription
drugs and eyeglasses, which is made possible by exorbitant
Medicare reimbursement rates in those regions," Scandrett
told the commission. "Yet in Minnesota, many Minnesotans
do not even have the option of Medicare HMO coverage because
reimbursement is so low that HMOs cannot make ends meet providing
only the basic Medicare services."
Scandrett and others urged the Medicare commission to change
federal payments so that reimbursement is based on the reasonable
costs of providing care, rather than rewarding inefficient
states.
"Something is seriously wrong with a system under which
working Minnesotans enjoy high-quality, affordable health
care provided through highly popular nonprofit HMO plans while
employed, then must settle for fewer options and more limited
benefits when they retire," Scandrett concluded.
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Established in 1985, the Minnesota Council of Health Plans
is a trade association of 11 licensed nonprofit health plans.
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