Article Summary –
Michigan Republican Rep. John James accused President Joe Biden’s administration of cutting a Medicare program and lying to voters. The Centers for Medicare and Medicaid Services announced steps to reclaim Medicare Advantage overpayments to the insurance industry, but predicted an overall increase in payments to insurers for 2024. Despite a decrease in reimbursement rates, the total amount of government payments to insurers is expected to increase by over $16 billion from 2024 to 2025.
Michigan Rep. John James Misleads on Medicare Cuts
Michigan’s Republican Rep. John James has been found misrepresenting President Joe Biden’s administration’s action on Medicare. He claimed that Biden’s administration cut a Medicare program, which he says will increase healthcare costs for seniors.
Medicare Advantage, known as Medicare Part C, allows recipients to receive coverage through a private plan. Last year, the Centers for Medicare and Medicaid Services (CMS) attempted to recover overpayments to the health insurance industry. Despite industry groups calling it a ‘cut’, CMS predicted an overall increase in payments to insurers in 2024.
In April, CMS stated that 2025 reimbursement rates would fall slightly under industry expectations. However, the total government payments to insurers are expected to increase by 3.70 percent, or over $16 billion, from 2024 to 2025.
James is part of the Republican Study Committee that proposed a budget with significant safety net program cuts. These include raising the Social Security eligibility age and replacing the current Medicare system with a fixed benefit offer.
Approximately 2.2 million Michigan residents receive Social Security and Medicare benefits, and over 2.6 million have insurance through Medicaid.
James, a Trump supporter, had once criticized the former president, calling him unfit to lead in 2022.
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