During the debate over ObamaCare last fall, the Administration threatened health insurance companies who were informing seniors of potential losses of Medicare Advantage (MA) benefits. As far as I could tell, the mailings were completely truthful and consistent with the CBO and CMS estimates. Medicare’s Chief Actuary, for example, predicts that eventually as many as 7.4 million beneficiaries will lose their MA plan altogether and another 7.4 million will experience a loss of benefits.
This week the very same agency that gagged the insurers is sending out a propaganda pamphlet to more than 40 million Medicare beneficiaries – extolling the benefits of the new law, but ignoring all the costs (including the fact that more than half the cost of health reform is to be paid for by reduced Medicare spending). The pamphlet even claims that MA enrollees will be better off!
Republicans are outraged [gated]. CMS says it only wants to help seniors avoid confusion. But won’t the biggest confusion come when their MA plans are cancelled?