AARP opposes Medicare Advantage inflated payments

The USA's AARP, which represents retired people, has issued a statement, following the Centers for Medicare and Medicaid Services (CMS) announcement of 2008 Medicare Advantage rates, saying these are unfair.

The "AARP believes inflated payments to Medicare Advantage plans are unfair and fiscally irresponsible. Congress should ensure that traditional Medicare and Medicare Advantage compete on a level playing field," said its director of government affairs, David Sloane.

Last month, the independent Medicare Payment Advisory Commission (MedPAC) found that reimbursements to Medicare Advantage plans are 12% more than reimbursements to Medicare's traditional fee-for-service program. All taxpayers and all Medicare members - not just the 18% enrolled in private MA plans - are funding these inflated payments, it claims.