Drew Ferguson: “The FEHBP-style reforms in H.R. 1 seek to place the traditional Medicare program on a level playing field with private…”

“The FEHBP-style reforms in H.R. 1 seek to place the traditional Medicare program on a level playing field with private plans. Only by creating this type of competition within Medicare can we hope to bend the growth curve and place Medicare on a sound financial footing for the future. These reforms make no changes to the basic entitlement to Medicare. The traditional Medicare program will continue to be available to all seniors throughout the country. These reforms simply provide incentives for seniors to choose the most cost-efficient form of care in areas in which a vibrant private plan market exists. This type of competition can only be triggered in areas in which two or more private plans are in operation, where they have a certain level of enrollment and meet certain market penetration requirements. In areas where these conditions are not met, nothing changes after 2010. In areas in which these conditions are met, the traditional Medicare program is compared directly to private plans in the market, and seniors will have incentives to choose the most cost-efficient form of care in their area. Reforms must be made to ensure that Medicare continues to exist for future generations.”