Biden Plans To Cut Medicare Advantage As A Debt Ceiling Debate Compromise

 April 3, 2023

Announcing that it would cut Medicare Advantage, the Biden’s administration does exactly what Biden has frequently claimed that Republicans are out to do. He has regularly claimed that the GOP wants to slash Medicare and Social Security, when he has behind closed doors negotiated cuts in Medicare programs himself.

This week, the Centers for Medicare and Medicaid Services (CMS) announced that they would make cuts to Medicare Advantage in 2024. However, these cuts are not as significant as those the administration proposed just two months ago.

According To A Report By Bloomberg-

“The US Medicare program moderated proposed changes broadly opposed by the health insurance industry. The changes reportedly will limit payments to companies that administer private versions of the program for the elderly.”

“The final rate notice for 2024 will mean a 1.12% cut for Medicare plans, after stripping out the expected impact of how plans report patient illnesses. The rate is slightly more favorable than what regulators proposed two months ago, which would have meant a 2.3% cut without the adjustment for patient illnesses.”

“When including the effect of that adjustment, Medicare says average payments to plans will increase. The agency will also phase in controversial changes that determine payments based on the severity of patients’ health problems”.

“That policy will take effect over three years instead of one year. This is after the proposal drew fierce criticism from the industry. Apparently, making money in government health care is about to get harder.”

“The changes add up to a near-term victory for the industry, which had argued that the Biden administration went too far in its initial proposal. But the policy may mark the start of a period of slower growth for a market that has doubled in size in the last decade, driving growth and profits at major insurers.”


Seemingly, as part of a potential compromise to address the coming debt ceiling deadline, Biden has proposed these cuts to Medicare Advantage. The double standard that Biden operates by, obviously has not gone unnoticed by Republicans.
Calling out Biden’s apparent hypocrisy, were Sens. Tom Cotton (R-AR), Steve Daines (R-MT), and Rep. Kevin Hern (R- OK), the chairman of the Republican Study Committee (RSC).

The method of accusing others while living a double standard, is nothing new for Biden. In a report by Breitbart, Biden, in his position as a Senator, sponsored a bill in 1975 that would sunset and reauthorize all federal programs, which included Social Security and Medicare. Then - Senator Biden said, when introducing the 1975 legislation-

“We must… begin reviewing existing programs to determine whether they are still effective, and whether they are worth the money that we are putting in them. We must eliminate the wasteful ones,” …“One thing that we have all observed is that once a federal program gets started, it is very difficult to stop it, or even change its emphasis, regardless of its performance in the past,” …and…“It is time for us to require, on a regular and continuing basis, that both the administrators of these programs and we legislators who adopt the programs, examine their operations with care and detail.”

Then - Senator Joe Biden

The balance between what seniors need and what the government provides through Medicare, seems to be an ongoing subject for debate. That Biden accuses the GOP of trying to cut these social programs and then turns around and mounts a financial campaign of his own in the same programs – is about as two faced as one gets.

“People that have trust issues only need to look in the mirror. There they will meet the one person that will betray them the most.” 

―Shannon L. Alder
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