House Bill Would Decimate Coverage For Millions Of Medicare Beneficiaries

Statement from Scott P. Serota, president and CEO of the Blue Cross and Blue Shield Association

July 25, 2007

WASHINGTON – "Congress should reject the House CHAMP Act, which would end private plan options for millions of Medicare beneficiaries.  The bill calls for massive funding cuts to Medicare Advantage and an unprecedented level of government overregulation which would make it impossible for private plans to continue their partnership with the federal government.  If this passes, Congress will have broken its promise of affordable, coordinated and comprehensive coverage for the Medicare population.  Millions will pay more and get less and not understand why they have lost this valuable option.  They will be asking Congress, 'Why are you taking away my benefits?'

While millions under age 65 have coverage that emphasizes coordinated care and chronic illness management, the CHAMP Act would take the option of these programs away once anyone is enrolled in Medicare.  Coordinated care programs are the most popular programs for the working population, who would lose this option when moving to Medicare.  Ironically, the bill recognizes those eligible for Medicare should have this option by calling for demonstration programs to develop what Congress is taking away.

Also lost would be the option of affordable choices, which is particularly critical for the most vulnerable - the retired, the disabled, the elderly and the low-income.

BCBSA urges Congress to reject the proposed CHAMP ACT.  Congress should work on a bipartisan proposal to reauthorize SCHIP without jeopardizing benefits for 8.7 million seniors and the disabled."