June/July 2001

Medicare Wants HMOs Back

Washington - Calling all HMOs. Medicare wants you back.

The Health Care Financing Administration, which runs Medicare, has announced a new plan to regain HMOs while helping senior citizens.

The agency, an arm of the Health and Human Services Department, will announce a plan to market its Medicare+Choice program, which currently offers HMO coverage to about 15 percent of the 40 million elderly and disabled served by Medicare. The goal will be to increase the membership to at least 30 percent of Medicare enrollees, said Thomas Scully, the HCFA's new leader.

In recent years, Congress has focused on trying to add a prescription drug benefit to Medicare, as many new medicines have been found effective in keeping seniors healthy and out of lengthy and expensive hospital stays.

Many observers felt bringing HMOs and other managed care plans into the fold would help bring access to prescription drugs and other benefits to the seniors. But in recent years, some health plans have dropped coverage, citing paperwork and payments too low for providing good services.

Source: Associated Press

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