In anticipation of the President's State of the Union Address on Monday, Judith Stein, Center for Medicare Advocacy Executive Director, calls for an economic stimulus package that will help the nation's seniors, disabled people and taxpayers.

"To help taxpayers in the long-term, the president should redirect the $150 billion in subsidies to private health plans that undermine traditional Medicare, threaten Medicare's financial viability, and burden taxpayers," says Stein. "Instead of giving $150 billion to corporations, give it back to taxpayers."

According to Stein, "Although the proposed economic rebates will help some seniors and taxpayers, support for traditional Medicare would truly help all.  Traditional Medicare covers beneficiaries in an easily accessible, cost-effective program wherever they get sick or injured."

"Private Medicare plans don't work as well as traditional Medicare for most people, and end up costing taxpayers more money – at least $150 billion more over the next nine years," says Stein. "Instead of putting subsidies into industry coffers, use that money to help seniors and taxpayers."

"It costs the government about 12 percent more on average to cover an enrollee in a private Medicare plan than in the traditional program, according to the Congressional Budget Office," says Stein. "Also, while the President may tout the plans as offering more choice, Medicare private plans actually limit enrollees' choice of who can provide care and where the care can be provided. Traditional Medicare provides far greater choice, and at far less cost."

Nonetheless, Ms. Stein anticipates the President will call for cuts to traditional Medicare, not to Medicare private plans.  "The President will likely announce the need to cut Medicare during the State of the Union.  He may even say he has no choice because of a little known clause included in the 2003 Medicare drug bill by members of Congress who seek to destroy traditional Medicare.”  

“The President will likely look to limit benefits to seniors and payments to doctors – and refuse to touch the billions of dollars in windfall profits to private insurance plans," continues Stein. "Three decades of experience with private Medicare plans have proven that the traditional Medicare program is more efficient and effective, but the Administration continues to insist that private plans deserve more money. Taxpayers' money goes to executives, marketing, and lobbyists who work to preserve the overpayments," says Stein.

"Traditional Medicare works because it is accessible to older people and those with disabilities," says Stein. "It is a model for a fair, uniform, and cost-effective health insurance program."

Judith Stein is available to comment.