Don’t let Biden sneak in more Medicare cuts on his way out the door

President Biden is trying to cut Medicare Advantage as his administration winds down.

Dec 11, 2024 - 23:01
Don’t let Biden sneak in more Medicare cuts on his way out the door

America’s seniors shouldn’t be used as pawns in a political game. But that is exactly what could be happening right now in the waning days of President Biden’s administration.

President Biden has made numerous claims over the years that it’s Republicans who are the party that supposedly wants to cut the Medicare program. President Biden needs to take a long, hard look in the mirror. It is actually the Biden administration that’s spent the last two years quietly chipping away at one of the most popular healthcare programs for our seniors: Medicare Advantage. And now, apparently not satisfied with the damage they have already inflicted, it appears the Biden team is trying to squeeze in one more cut on the way out the door.

Medicare Advantage shows how choice and competition can deliver better outcomes at lower costs for seniors and taxpayers. Nearly 35 million American seniors, over half of total Medicare beneficiaries, choose Medicare Advantage for their health coverage over a traditional government-run Medicare plan. Medicare Advantage plans are offered and managed by private health insurers that contract with Medicare. Their popularity has boomed over the years because they offer better value at a lower cost for seniors. Added benefits under Medicare Advantage plans like dental and vision care, better access to preventative care, along with improved health outcomes have helped ingrain their value to America’s seniors.

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Yet, despite the Medicare Advantage program’s popularity, the Biden administration seems intent on undermining it, putting partisan ideology ahead of the well-being of seniors. Over the past two years, the administration has implemented a series of changes that have effectively reduced funding for Medicare Advantage. These cuts are disguised as "payment adjustments," but the reality is clear: they are cutting funding for a program that seniors overwhelmingly support. The results? Higher premiums, reduced benefits, and narrower provider networks for many Medicare Advantage enrollees.

Now, it appears that the Biden administration may be trying to sneak in one more Medicare Advantage cut on their way out the door. Two days before Thanksgiving a notice was quietly filed with the Office of Management and Budget showing that the administration has begun regulatory review of the 2026 Medicare Advantage rates. The danger is clear: moving this rate review too far down the regulatory tracks during the lame duck period of the Biden administration means the incoming Trump team would have little time to unwind the process. Per federal statute, the last day for the Centers for Medicare & Medicaid Services to release the advance notice for 2026 Medicare Advantage rate changes is the first week of February 2025 – just a few weeks after President Trump’s inauguration.

Between the complexity of the payment update process and the deadline coming so soon after the inauguration, the incoming Trump administration has a very short window of opportunity to stop another Biden-approved Medicare Advantage cut – cuts that President Trump called out on the campaign trail and promised he would end.

The Biden administration needs to stop hiding the ball and give up in their efforts to hamstring the incoming Trump administration. CMS bureaucrats need to be called out and stopped from advancing another proposed Medicare Advantage cut that is harmful to American seniors.

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The Medicare Advantage program can be improved. Republicans have called for implementing a competitive bidding process that would harness competition to reduce costs for seniors and taxpayers. Members in both parties have called for modifying the calculation of risk adjustments, to improve a system that can be gamed and often rewards companies for documenting patient acuity rather than actually improving outcomes. But, the left does not want to improve Medicare Advantage – they want to undermine the program to advance their long-term goal of centralizing more health care under the government’s control.

This is about more than just Medicare – it’s about trust. Seniors rely on Medicare Advantage not only for medical care but also for their peace of mind. They need to know their coverage is secure and won’t be subject to political gamesmanship. President Trump understands this, which is why his first administration worked to protect and expand the program. Republicans know that seniors deserve choice, competition, and care that meets their needs – not bureaucratic meddling.