Opening Statement of the Hon. Jim Ramstad, M.C., Minnesota

Hearing on the Medicare+Choice: Lessons for Reform

May 1, 2001

As a representative from a state hurt by the unfair and unjust inequity in the Medicare managed care reimbursement formula, I know firsthand the difficulties faced by seniors when irrational decisions at the federal level deny them the choices they deserve. As I have said repeatedly before this Committee, because Minnesota has a history of efficient health care, we are penalized by low Medicare+Choice payments.

The Medicare+Choice program does improve the coordination of care and provide our seniors with increased benefits, if reimbursements are high enough.

Today, we will hear about the innovative, comprehensive and coordinated care offered by great companies like UnitedHealth Group. These benefits aren't easily quantified or put on a chart for a cost/benefit analysis. However, they are incredibly important, especially for managing chronic diseases and keeping people healthier longer.

But when HCFA continues to penalize states like Minnesota which have historically provided excellent care at a low price, Medicare+Choice beneficiaries suffer. Any system that rewards the least efficient and penalizes those who watch the bottom line simply isn't sustainable.

That's why I was pleased that last year we were able to increase the minimum floor payment for Medicare+Choice to $475 in rural counties and $525 in urban counties. This first step toward fairness has allowed the two Medicare+Choice plans in Minnesota, UCare Minnesota and HealthPartners, to both reduce their premiums and increase benefits. This is the kind of responsible health care Minnesota is known for, and I am proud of what they've done.

Madam Chairwoman, I know this is a controversial issue, I know that everyone here today doesn't see eye-to-eye on the Medicare+Choice program. However, I know that managed care has an important role in improving patient care in the Medicare system and provides needed choices for our seniors.

Thanks again for your leadership. I look forward to learning more from today's witnesses on how we can best address this issue.