New TV Ad from Americans United for Change: “Halloween Comes Early for Insurance Giant Humana”
Ad Takes Humana and Its GOP Apologists to Task for Scaring America’s Seniors to Protect Insurance Industry Profits
Washington D.C. – Americans United for Change unveiled a new television ad today taking aim at health insurance giant Humana Inc. and its Republican apologists in Congress for stooping to a new low in their efforts to kill health insurance reform and protect insurance industry profits: scaring seniors. The spot called “Halloween Comes Early for Humana” is airing this week on cable in the Orlando, FL, Louisville, KY and Washington D.C. media markets.
Last week, the Centers for Medicare and Medicaid Services launched an investigation into whether Humana “misused [Medicare] beneficiaries' personal information" by sending a misleading mailer to seniors in a number of states using a federally-provided list that warns of Medicare“benefit reductions” and “higher costs” under health insurance reform proposals before Congress. As the AARP has found, “None of the health care reform proposals being considered by Congress would cut Medicare benefits or increase your out-of-pocket costs for Medicare services.” Several Congressional Republicans including Senate Minority Leader Mitch McConnell and House Minority Leader John Boehner rushed to the defense of Humana.
Coinciding with the launch of the new AUFC ad in the Orlando media market, the Florida Alliance for Retired Americans, AFSCME and local seniors will hold a rally and press conference in front of the Humana office in West Palm Beach today at 12 pm EDT denouncing Humana for trying to scare seniors about health insurance reform. In addition, AUFC coalition partner Health Care for America Now is sending this mailer to thousands of Humana CEO Michael McCallister’s neighbors in Kentucky, asking them to call Humana’s Corporate Headquarters and tell them to stop deceiving senior citizens: http://aufc.3cdn.net/97ec41c9e82c55d885_kum6bhv2f.pdf
Tom McMahon, Acting Executive Director, Americans United for Change: “It was no surprise to see Congressional Republicans leap to the aid of Humana after the insurance giant got caught peddling misinformation to seniors about Medicare. It fits perfectly with the GOP’s overall health care strategy: stirring up fear to help kill health insurance reform. The fact remains, none of the proposals before Congress will cut benefits or increase costs for Medicare beneficiaries -- in fact, just the opposite. Just ask the AARP. This fear mongering has nothing to do with what’s best for seniors and everything to do with protecting the billions of dollars in unnecessary subsidies the big insurance companies rake in by offering the so-called Medicare Advantage program. It is pretty rich to hear Republicans pretending to be champions of Medicare considering their party vehemently opposed the very creation of the program 40 years ago and have worked every day since to undermine it. Medicare Advantage is a perfect example.
“Medicare Advantage is a hugely wasteful Bush-era program that offers virtually the same services as regular Medicare, only with a 14% higher price tag to taxpayers and with a highly debatable ‘advantage’ in quality. What’s really frightening is that these overpayments to Medicare Advantage have resulted in higher premiums for the than 31 million seniors and people with disabilities enrolled in regular Medicare.
“Humana and Congressional Republicans are claiming that the proposals before Congress to rein in these massive overpayments to Medicare Advantage will mean the insurance industry will have to drop the sweeteners the program offers to some of its members to justify its existence to Congress, like a free dental checkup or a gym membership. They neglect to mention that all Medicare beneficiaries subsidize these sweeteners even though seniors enrolled in MA are the only ones eligible to receive them. Second, as the Economic Policy Institute had noted, these overpayments -- which come at the expense of other Medicare enrollees and the long-term health of the program -- go toward profits and higher administrative costs, including the cost of marketing the plans to seniors. So, here’s a novel idea for Humana and the other big insurance companies that are still going to make huge profits from this program with or without these wasteful subsidies: how about reining in your massive CEO compensation and administrative and marketing costs before you consider making adjustments to these sweeteners. Humana’s CEO Michael McCallister, for instance, made $4,764,309 last year. Are there any sweeteners that he can do without” added McMahon.
ADDITIONAL BACKGROUND ON MEDICARE ADVANTAGE:
According to the Economic Policy Institute, “In a nut shell, Medicare Advantage plans are private plans funded through Medicare to provide similar benefits, but at a 14% higher cost on average, according to the Medicare Payment Advisory Commission (MedPAC), an independent Congressional agency. Eliminating these overpayments would free up $157 billion over 10 years, a substantial down payment on health care reform.”
EPI further notes that: “The [insurance] industry uses the overpayments to offer sweeteners like free dental check-ups or reduced premiums that entice seniors to enroll in the plans and justify their existence to Congress. As MedPAC Chairman Glenn Hackbarth recently testified, the enhanced benefits provided to Medicare Advantage enrollees are “overwhelmingly…not financed out of plan efficiency, but rather by the Medicare program and other beneficiaries.” These overpayments, which come at the expense of other Medicare enrollees and the long-term health of the program, go toward profits and higher administrative costs, including the cost of marketing the plans to seniors.”
And as Center on Budget and Policy Priorities noted in their recent report, Ending Medicare Advantage Overpayments Would Strengthen Medicare:“The overpayments, which have totaled nearly $44 billion between 2004 and 2008, average more than $1,100 for each beneficiary enrolled in a private plan. By increasing Medicare costs, these overpayments also drive up premiums for beneficiaries in traditional Medicare by $86 per year for a couple, according to the chief actuary at the Centers for Medicare and Medicaid Services. More than 31 million seniors and people with disabilities enrolled in regular Medicare are forced to pay higher premiums each month to subsidize these excess payments.The overpayments also “contribute to the worsening long-range financial sustainability of the Medicare program,” as Glenn Hackbarth, MedPAC’s chairman, has warned Congress. They advance the date when the Medicare Hospital Insurance Trust Fund will become insolvent by 17 months.”
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