tag:blogger.com,1999:blog-9075324469668918466.post1698169844834904440..comments2023-12-06T02:22:41.121-06:00Comments on The Hamburg Post: Humana Gag Order: Abuse of Power or Warranted?tthttp://www.blogger.com/profile/09917268285666551114noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-9075324469668918466.post-71599434248235471132009-09-30T07:01:15.498-05:002009-09-30T07:01:15.498-05:00Anon...I thank you for your comments. I did mentio...Anon...I thank you for your comments. I did mention the 14% extra kick that Humana and others receive in my blog entry. Let's be honest with each other. The only reason Sen. Baucus asked for the inquiry was because the mailer accurately displays what potential change will take place if the Baucus Bill is passed.<br /><br />Let's not fool ourselves either to believe that insurers, like Humana, will not reduce coverage under Medicare Advantage if the 14% kickback is eliminated. It would be bad business practice if they did not. The other day the Star Tribune reported that the Mayo Clinic lost over $730M in taking care of Medicare patients. Who do you think makes up for the lost revenue?tthttps://www.blogger.com/profile/09917268285666551114noreply@blogger.comtag:blogger.com,1999:blog-9075324469668918466.post-68956402541422686062009-09-29T22:38:42.031-05:002009-09-29T22:38:42.031-05:00No matter how "honest" Humana's lett...No matter how "honest" Humana's letter may sound, when they signed on to be a Medicare Advantage provider -- a contract they signed freely and voluntarily, even enthusiastically -- they agreed to abide by VERY strict mailing and marketing rules. They appear to have violated those rules (you fail to mention the Humana letter was delived in an envelope making it appear to come from Medicare, not Humana, thereby frightening seniors needlessly).<br />CMS is only ordering Humana to comply with the contract they signed (and FYI, CMS has issued a similar letter to dozens of other, though smaller, Medicare Advantage providers).<br />Finally, CBO and several health economists have concluded even with a $235 billion cut to Medicare Advantage, there will be few if any cuts to existing Medicare Advantage programs. What seems to be ignored is that the 14% supplemental (subsidy) payout goes mostly to clear profit for Humana. Even if this cuts that supplement to only 4% or 5%, Humana would still be paid enough to supply the same care, though with a smaller profit. People should be reminded that for about a decade, until 2002, Medicare Advantage paid only 95% of Medicare and was still successful.Anonymousnoreply@blogger.com