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February 18, 2015 The Honorable Marilyn B. Tavenner Administrator, Centers for Medicare & Medicaid Services Department of Health and Human Services 200 Independence Avenue, SW Washington, D.C. 20201 Dear Administrator Tavenner: On behalf of the undersigned business organizations from across the country, we urge you to protect the Medicare Advantage (“MA”) plans that more than 16 million Medicare-eligible beneficiaries favor and consistently re-elect for health care coverage each year. These plans are a valued form of coverage for employees and employers and represent the future of health care delivery as the system moves toward customized, integrated care. Because beneficiaries prefer MA plans, enrollment is projected to grow to nearly 22 million seniors by 2020. Unlike original Medicare fee-for-service (FFS), MA plans provide stronger care coordination services and encourage better health outcomes for enrollees. Some of the superior health outcomes enjoyed by MA plan enrollees include shorter hospital stays, fewer hospital admissions, and 13-20 percent lower readmissions rates. Additionally, MA plan enrollees enjoy innovative benefit and coverage services that are not offered under FFS and uniquely meet the needs of this growing population, including in-home clinical visits with nurse practitioners and nurse hotlines. It’s no surprise that more than 90% of seniors enrolled in MA are highly satisfied with their coverage. Not only do employers and employees prefer MA plans because of the innovative integrated care provided, but they also appreciate that these plans are more affordable than coverage through original Medicare FFS. Data shows that MA beneficiaries spend an average of $2,200 annually on health care coverage compared to $4,000 for supplemental coverage in Medicare FFS. MA plans provide beneficiaries with financial security demonstrated by the fact that more than half of MA enrollees had an out-of-pocket maximum of $5,000 or less in 2014. Annual cuts to the MA program continue to jeopardize employers, employees, providers and patient’s choices in coverage under Medicare. MA plans have been cut by approximately 14 percent since 2010, including a 10 percent cut over the last two years alone. Employees and employers are experiencing the downstream impact of these cuts through an erosion of MA benefits, increased out-of-pocket costs, and reduced access to providers and plan services. For the first time since MA plans have been available, roughly half a million Medicare beneficiaries will be unable to access an MA alternative this year. Alarmingly, there will be entire counties in the United States where the MA program will no longer be available at all. We urge CMS and Congress to protect America’s senior employees and retirees from any further coverage harm and disruption that will undoubtedly occur if additional MA cuts are made during the upcoming rate setting process.

Medicare Advantage Letter - AHIP

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Medicare Advantage Letter - AHIP

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Page 1: Medicare Advantage Letter - AHIP

February 18, 2015 The Honorable Marilyn B. Tavenner Administrator, Centers for Medicare & Medicaid Services Department of Health and Human Services 200 Independence Avenue, SW Washington, D.C. 20201 Dear Administrator Tavenner: On behalf of the undersigned business organizations from across the country, we urge you to

protect the Medicare Advantage (“MA”) plans that more than 16 million Medicare-eligible

beneficiaries favor and consistently re-elect for health care coverage each year. These plans

are a valued form of coverage for employees and employers and represent the future of health

care delivery as the system moves toward customized, integrated care. Because beneficiaries

prefer MA plans, enrollment is projected to grow to nearly 22 million seniors by 2020.

Unlike original Medicare fee-for-service (FFS), MA plans provide stronger care coordination

services and encourage better health outcomes for enrollees. Some of the superior health

outcomes enjoyed by MA plan enrollees include shorter hospital stays, fewer hospital

admissions, and 13-20 percent lower readmissions rates. Additionally, MA plan enrollees enjoy

innovative benefit and coverage services that are not offered under FFS and uniquely meet the

needs of this growing population, including in-home clinical visits with nurse practitioners and

nurse hotlines. It’s no surprise that more than 90% of seniors enrolled in MA are highly satisfied

with their coverage.

Not only do employers and employees prefer MA plans because of the innovative integrated

care provided, but they also appreciate that these plans are more affordable than coverage

through original Medicare FFS. Data shows that MA beneficiaries spend an average of $2,200

annually on health care coverage compared to $4,000 for supplemental coverage in Medicare

FFS. MA plans provide beneficiaries with financial security demonstrated by the fact that more

than half of MA enrollees had an out-of-pocket maximum of $5,000 or less in 2014.

Annual cuts to the MA program continue to jeopardize employers, employees, providers and

patient’s choices in coverage under Medicare. MA plans have been cut by approximately 14

percent since 2010, including a 10 percent cut over the last two years alone. Employees and

employers are experiencing the downstream impact of these cuts through an erosion of MA

benefits, increased out-of-pocket costs, and reduced access to providers and plan services. For

the first time since MA plans have been available, roughly half a million Medicare beneficiaries

will be unable to access an MA alternative this year. Alarmingly, there will be entire counties in

the United States where the MA program will no longer be available at all.

We urge CMS and Congress to protect America’s senior employees and retirees from any

further coverage harm and disruption that will undoubtedly occur if additional MA cuts are made

during the upcoming rate setting process.

Page 2: Medicare Advantage Letter - AHIP

Sincerely,

Arizona Chamber of Commerce and Industry

Arizona Manufacturers Council

Associated Industries of Florida

Business Council of Alabama

Business Council of New York State, Inc.

Business and Industry Association of New Hampshire

California Chamber of Commerce

Commerce and Industry Association of New Jersey

Connecticut Business & Industry Association

Delaware State Chamber of Commerce

Florida Chamber of Commerce

Illinois Chamber of Commerce

Illinois Manufacturers’ Association

Indiana Chamber of Commerce

Kentucky Chamber of Commerce

Las Vegas Metro Chamber of Commerce

Maine State Chamber of Commerce

Maryland Chamber of Commerce

Michigan Chamber of Commerce

Minnesota Chamber of Commerce

Missouri Chamber of Commerce

National Association of Manufacturers

Nebraska Chamber of Commerce & Industry

Nevada Manufacturers Association

New Jersey State Chamber of Commerce

New Mexico Association of Commerce and Industry

Ohio Chamber of Commerce

Ohio Manufacturers’ Association

State Chamber of Oklahoma

Pennsylvania Chamber of Business and Industry

Puerto Rico Chamber of Commerce

Rhode Island Chamber of Commerce Coalition

South Carolina Chamber of Commerce

Tennessee Chamber of Commerce and Industry

Texas Association of Business

The Chamber of Reno, Sparks, and Northern Nevada

U.S. Chamber of Commerce

Virginia Chamber of Commerce

West Virginia Chamber of Commerce

Wisconsin Manufacturers & Commerce