Cliff Stearns: “Today, Mr. Speaker, there is one issue that I hear an awful lot about from constituents in my district. I just finished…”

“Today, Mr. Speaker, there is one issue that I hear an awful lot about from constituents in my district. I just finished eight town meetings. The question they ask me repeatedly is why are Medicare health maintenance organizations no longer available? It is not an easy question to answer because the issue is a complex one and there is no simple explanation. Today I would like to share with Members my understanding of some of the major reasons why HMOs have decided not to renew their plans in central Florida and elsewhere in this country. Thus far this action has affected over 440,000 Medicare beneficiaries across this country. Mr. Speaker, the Balanced Budget Act of 1997 restructured the system for setting the rates by which Medicare pays HMOs. The Balanced Budget Act may have been overly ambitious in setting its deadlines and these ambitious deadlines may be having the opposite effect. HCFA, the Health Care Financing Administration, created numerous problems by issuing interim final regulations that contain overly expansive interpretations of the BBA and are frankly contrary to congressional intent. HCFA also has been rigid in its implementation of the 1997 Balanced Budget Act, even though the act called for flexibility in implementing the new Medicare choice. Nevertheless, HCFA has chosen to be heavy-handed and these regulations have led to less rather than more options and choices for Medicare beneficiaries.”