Statement On Medicare Trustees' Report

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

April 1, 2008

WASHINGTON – In response to the testimony on the Medicare Trustees' report discussed at the House Ways and Means Committee's Subcommittee on Health hearing today, Scott P. Serota, president and chief executive officer of the Blue Cross and Blue Shield Association (BCBSA), issued the following statement:

"The Medicare Board of Trustees' report emphasizes the need to address the financial burden that chronic illness places on the Medicare program.  The Medicare Advantage (MA) program is best suited to support Medicare beneficiaries that need assistance in managing multiple chronic illnesses such as asthma, diabetes, chronic obstructive pulmonary disease and congestive heart failure.  MA plans provide affordable, comprehensive coverage to millions of Americans.

"The Blue Cross and Blue Shield Association (BCBSA) recently unveiled a 5-point plan, titled, 'The Pathway to Covering America,' to change the incentives in today's delivery system to help assure high-quality, affordable care and other solutions to extend health coverage to Americans.  One of the five initiatives in our proposal highlights the need to coordinate care for those with multiple chronic conditions.  Virtually all the growth in spending in Medicare from l987 to 2002 was due to a 20 percent increase in the share of Medicare patients receiving treatment for five or more conditions.

"The impact of any further cuts to the MA program would fall squarely on the shoulders of the 9 million beneficiaries who rely on MA plans.  Funding reductions would result in premium increases, benefit reductions and, possibly, the loss of quality, coordinated care programs that MA provides.

"BCBSA encourages members of Congress to preserve the MA program.  MA provides the infrastructure needed to improve outcomes by better meeting the coordinated care and preventative health needs of Medicare beneficiaries."