Max Baucus: “I would like to take a couple moments to speak on two amendments, one offered by, I think, Senator Hatch, with respect…”

“I would like to take a couple moments to speak on two amendments, one offered by, I think, Senator Hatch, with respect to Medicare Advantage. Off the topic, it is important to remember that health care reform will reduce excessive overpayments to Medicare Advantage plans, while at the same time rewarding high-quality, efficient plans for providing care to seniors. Medicare Advantage plans that achieve high-quality rankings under this legislation, let's say, for regular checkups for blood pressure, diabetes, will receive an increase in payments. That is very important because, today, Medicare Advantage plans are paid the same amount regardless of the quality of care they provide. For the first time, under this legislation, payments to plans would be based on performance. I think that is something all seniors would prefer. That makes this Medicare Advantage plan more fair, more reasonable. This will enable plans to participate everywhere in the country, both urban and rural, while eliminating overpayments that plans receive today. According to MedPAC--MedPAC is that bipartisan commission that advises Congress on Medicare payments--that organization says Medicare Advantage plans are paid 13 percent more than traditional fee-for-service plans, on average, and in some parts of the country overpayment is as high as 20 percent. They strongly recommend that we reduce that overpayment because it causes great inefficiencies.”