The nation’s health insurance companies say legislation wending its way through the … More
The nation’s health insurance companies express concern that the legislation making its way through the Republican-controlled Congress would violate a promise made by President Donald Trump and the GOP not to reduce Medicare benefits for seniors.
This is part of a larger battle within the healthcare industry against proposed federal cuts in healthcare benefits for millions of Americans. Physicians, led by the American Medical Association, have launched an ad campaign targeting U.S. senators to oppose the budget legislation.
The legislation, known as the “One Big Beautiful Bill Act,” recently passed in the Republican-controlled U.S. House of Representatives. This bill would decrease federal Medicaid spending by $793 billion and result in 7.8 million more uninsured individuals, as indicated by a KFF analysis.
However, America’s Health Insurance Plans, a prominent lobby group, warns that Medicare would also face cuts, leading to increased costs for millions of seniors. AHIP’s members include major health insurers like Elevance Health, Humana, CVS Health’s Aetna, and various Blue Cross and Blue Shield plans.
These health insurers, such as UnitedHealth Group’s UnitedHealthcare, offer health benefits to over half of the nation’s eligible seniors through Medicare Advantage. These plans provide additional benefits and services beyond traditional Medicare, such as disease management and wellness programs.
“The President and Congressional leaders made a clear promise to seniors that there would be no cuts to Medicare as part of the budget reconciliation legislation,” stated AHIP President and CEO Mike Tuffin.
However, health insurers believe that there are efforts in Congress to reduce spending on Medicare Advantage, which could lead to higher costs and fewer benefits for seniors. They oppose these cuts and urge Congress to honor the commitment to America’s seniors.
Any decrease in health plan members covered by Medicare Advantage would negatively impact health insurers, as they rely on a large subscriber base to cover their expenses. Many insurers have already been affected by rising costs due to increased enrollment in Medicare Advantage plans.
