Kennedy Powers Senate Medicare Vote

The changes could lead to a significant drop in enrollment in private Medicare plans, according to Peter Orszag, director of the Congressional Budget Office.

Orszag makes that prediction in an analysis sent to Sen. Judd Gregg, the highest ranking Republican on the Senate Budget Committee.

The bill might cut about $12.5 billion in federal spending from 2009 to 2013, and about $47.5 billion in spending from 2009 to 2018, Orszag writes.

The bill provisions requiring the Medicare Advantage private FFS plans to use provider networks and reducing the payments to plans could cut Medicare Advantage plan enrollment, Orszag writes.

Today, there are about 9.6 million people enrolled in Medicare Advantage plans, with 2.3 million of those people in private FFS plans.

The CBO has been predicting that Medicare Advantage plans will cover a total of 14.3 million people in 2013, with 5 million of the beneficiaries in private FFS plans, Orszag writes.

If H.R. 6331 takes effect as written, CBO analysts believe the Medicare Advantage program will cover about 12 million people in 2013, Orszag writes.

The special needs plan provision would increase Medicare Advantage health maintenance organization and preferred provider organization plan enrollment by less than 100,000, Orszag predicts.

Members of Congress developed H.R. 6331 in an effort to find the money to cancel cuts in Medicare physician reimbursement rates that is set to take effect this month.

America’s Health Insurance Plans, Washington, is opposing the bill.

AHIP President Karen Ignagni has put out a statement calling on Congress to address the physician payment issue without hurting Medicare Advantage funding.

“More than 2 million seniors across the country stand to lose their Medicare Advantage benefits,” Ignagni says in the statement. “This could have devastating impact on seniors who rely on the extra benefits and lower out-of-pocket costs these plans provide.”