FOR IMMEDIATE RELEASE, Monday, June 18, 2007
CONTACT: Yoni Cohen, Stark (202) 225-3202

WASHINGTON, D.C. -- Representative Pete Stark (CA-13), Chairman of the Ways and Means Health Subcommittee, today responded to an announcement by the Centers for Medicare and Medicaid Services (CMS) that seven private health insurance companies had agreed to a voluntary and temporary suspension of Private-Fee-For-Service marketing.

"The Bush Administration and private health plans have finally acknowledged part of the problem, but they continue to refuse to be a meaningful part of the solution," said Stark. "Across America, profit-driven private plans and their agents are using dishonest tactics to sign seniors and people with disabilities up for private Medicare Advantage plans. The Administration’s response is to allow private companies to determine which crimes they’ll plead to and which sentences they’ll serve. This will do virtually nothing to protect Medicare beneficiaries and is a pathetic attempt to preempt Congressional action."

"Independent and nonpartisan experts agree that private plans are massively overpaid relative to Medicare," continued Stark. "These overpayments cost taxpayers billions, raise premiums for all Medicare beneficiaries, and deplete the Medicare Trust Fund. In addition, the excessive payments also provide an incentive for marketing abuses that will continue as long as they are in effect. The Bush Administration's support for private plans who appear to have dictated the terms of the marketing agreement affirms their commitment to privatizing Medicare. I intend to take America in a different direction, and protect Medicare's status as an entitlement."