Stop privatization of Medicare resolution (11-07)

Jan 22, 2008 1:37 PM

Whereas, the private health plans known as Medicare Advantage receive 12% to 19% in overpayments for profit where funding for Medicare has been cut; and

Whereas, a savings of $50 billion over five years would result if all Medicare beneficiaries received the same amount of funding, thus making possible improved benefits for all Medicare recipients; and

Whereas, the overpayments create an uneven playing field for traditional Medicare since Medicare Advantage has the ability to “cherry pick” or target younger and healthier seniors while at the same time refusing to enroll seniors with costly health conditions; and

Whereas, Medicare Advantage is clearly a first step towards the privatization of Medicare. Starting in 2010 in a so-called experiment, the privatization of Medicare will be further promoted. Briefly, seniors in six metropolitan areas will receive from Medicare a voucher to purchase their health coverage. It is expected that the voucher will be less than the cost of traditional Medicare but above the cost of private plans. If a senior chooses a plan that costs more than the amount of the voucher, the senior must make up the difference in cost. As a result, seniors will be encouraged to leave traditional Medicare, thus boosting enrollment in private plans; be it therefore

Resolved, that we urge Congress to abolish overpayments to private plans for profit and to maintain and strengthen traditional Medicare which has been a very successful program for over 40 years; be it further

Resolved, that we urge Congress to pass legislation abolishing overpayments by a veto-proof margin since President Bush has stated his intention to veto a bill calling for its abolition; be it further

Resolved, that NYSUT engage with all its allies in the fight to make the public aware, and the AFT urge Congress to take legislative action by petitions, faxes, emails, letter or any other form of public campaign to ensure a veto-proof legislation.

Passed at the Nov. 7, 2007 UFT Delegate Assembly.