WASHINGTON -- The Obama administration on Monday (March 30) raised the bar for Medicare private insurance plans seeking to win the government's seal of approval.
The administration announced new curbs on the health plans, popular with seniors yet also criticized for marketing abuses and charging high costs to the government. The plans, offered by major insurers such as UnitedHealthcare and Humana, flourished under Republicans but are seen by Democrats as undermining the traditional program.
Medicare officials said the changes include winnowing the number of versions of a plan that insurers can offer, protecting patients with chronic diseases from excessive co-payments and banning a practice by some plans that can add even more to the costs of brand-name drugs.
About 10 million seniors get comprehensive medical coverage through such plans, and another 17 million are signed up in private drug plans. Every year, they have the opportunity to sign up or change plans during an open-enrollment period.
(The preceding report was published March 31, 2009, by The Chicago Tribune.)