Medicare is a federal health insurance program covering individuals 65 years of age or older and younger individuals with certain disabilities or health conditions.  Individuals eligible for Medicare may enroll in either the original Medicare program or a Medicare Advantage plan.  The original Medicare program is administered by the federal government which pays claims directly to participating providers.  Enrollees in the original Medicare program may choose to add privately administered supplemental coverage and prescription drug coverage.  The Medicare Advantage Program is administered by private insurers and has many of the characteristics of private insurance, including provider networks and prior authorization requirements.  Both the original Medicare program and Medicare Advantage have cost-sharing requirements and are regulated almost exclusively by federal law, which preempts most state law in this area.

Legislative findings are made regarding the effectiveness of Medicare as a public health care program, the creation of for-profit, privatized health care programs within Medicare, reports of fraudulent practices resulting in overcharging Medicare, and the risks to the Medicare Trust Fund posed by further privatization of Medicare.

The Legislature expresses its opposition to Medicare privatization and urges the federal government to create a level playing field between the original Medicare program and the Medicare Advantage program.  The request is intended to prevent Medicare beneficiaries from experiencing additional costs when choosing the original Medicare program and to provide them with a choice between public and private programs to increase health care equity.  The Legislature specifically requests that the federal government:

• eliminate the 20 percent copays associated with the original Medicare program and establish an out-of-pocket cap on medical expenses;
• add benefits to the original Medicare program, such as dental, vision, and hearing coverage;
• eliminate the allowed administrative costs and profits in the Medicare Advantage programs; and
• recoup funds for the Medicare Trust Fund from Medicare Advantage overpayments, fraud, and abuse in order to support a robust original Medicare program that will lower costs and improve benefits, access, and equity.

(In support) This memorial asks Congress to level the playing field so that Medicare beneficiaries have a genuine choice between the original Medicare program and Medicare Advantage.  This issue is not only important to current Medicare beneficiaries, but also for future retirees who are going to be counting on a strong, sustainable Medicare program that can meet their health care needs.  Leveling the playing field will help fight the overpayments to private Medicare Advantage companies.  Medicare Advantage programs are private plans that promise a lot but don't deliver, and this memorial attempts to put health care over profits.  Government agencies, researchers, and investigators have uncovered fraudulent practices in the private Medicare system worth billions of dollars each year. 

(Opposed) None.

Senator Bob Hasegawa, prime sponsor; Karen Richter, Co-President Puget Sound Advocates for Retirement Action; Robby Stern, Puget Sound Advocates for Retirement Action; Carissa Larsen, WA State Labor Council; and Walt Bowen, Washington Senior Lobby.