Thursday, September 15, 2011

Obamacare’s Latest Waiver Program: Seniors Can Keep Their Coverage — For Now…

This morning the Administration is attempting to tout projected increased enrollment in Medicare Advantage for 2012 as evidence that Obamacare won’t result in harm for Medicare beneficiaries.  But in reality, it’s more a reflection of the Administration making a political calculation to avoid the worst effects of Obamacare taking effect during the President’s re-election campaign.

The Associated Press previously reported on what amounts to a round of temporary Obamacare waivers granted by the Administration – this one to seniors in Medicare Advantage.  The “reprieve” granted by the Administration comes in the form of a multi-billion dollar demonstration project – FAR larger and broader than any prior demonstration program – to pay “bonuses” that mitigate the effects of Obamacare’s damaging Medicare Advantage cuts.  It’s these bonus payments – which were NOT included in Obamacare, and were created unilaterally by CMS as an attempt to stifle political opposition to the law – that are keeping plans from raising premiums and dropping coverage for seniors.

The AP story earlier this year noted that this waiver/bonus program “could head off service cuts that would have been a [political] headache for Obama and Democrats in next year’s elections.”  Even a former Democrat staffer who worked in the Clinton Administration admitted that the effort amounted to a political stunt: “It’s fair to say that [Medicare] could not tolerate dislocation, given the political climate.”

The Congressional Budget Office and the Medicare trustees STILL project that millions of seniors will lose their Medicare Advantage plans thanks to Obamacare.  But when do both CBO and the Medicare trustees think enrollment in Medicare Advantage will decline, meaning seniors will start losing their plans?  Beginning in 2013 – right after President Obama runs for re-election.  So for millions of Medicare beneficiaries, the mantra becomes “If you like your current plan, you can keep it – until after November 2012.”

Many may view the latest round of waivers for seniors as a mere continuation of the backroom deals that epitomized Democrats’ unpopular 2700-page health care law – and a further example of Democrats playing politics with Medicare ahead of President Obama’s re-election.