Van Hollen Statement on President Obama's Event in Wheaton

Statement

Today Congressman Chris Van Hollen (D-MD), Assistant to the Speaker, issued the following statement on President Obama's tele-town hall with seniors in Wheaton, M.D. on the benefits of the Affordable Care Act:

"I want to applaud President Obama for speaking with seniors today in my district and across the country about the many important provisions in health care reform. From closing the "donut hole' to combating Medicare fraud that targets our seniors, the Affordable Care Act is critical to ensuring that seniors have the health security they have earned. The bill strengthens Medicare by extending the Trust Fund by 12 years and helps ensure seniors have the care they need and the doctor of their choice. This is all done in a fiscally responsible way and helps reduce our deficit by $1.3 trillion over 20 years.

"Unfortunately, Washington Republicans have made clear that they have no interest seeing health reform work. In fact, their number one priority is repealing health care reform and putting the insurance industry back in the driver seat. They have also put forward a reckless plan to dismantle Medicare as we know it, and recently opposed legislation ensuring that seniors, military service members, and Americans with disabilities continue to have access to doctors they know and trust.

"Now is not the time to turn back to the ideas of the past that have been rejected by the American people. It is important that instead of undermining health care reform, we all work together to ensure it is a success."

Some of the new benefits in the Affordable Care Act include:

A one-time, tax free $250 rebate check for seniors who hit the prescription drug "donut hole" who are not already receiving Medicare Extra Help. These checks will begin mailing on June 10 and will continue monthly throughout the year as beneficiaries enter the coverage gap.

Free preventive care services like colorectal cancer screening and mammograms and a free annual wellness visit.

Community health teams will provide patient-centered care so seniors won't have to see multiple doctors who don't work together. The new law also helps seniors who are hospitalized return home successfully--and avoid going back--by helping to coordinate care and ensure they have access to support in their community.

Medicare pays Medicare Advantage insurance companies over $1,000 more per person on average than traditional Medicare. These additional payments are paid for in part by increased premiums for all Medicare beneficiaries--including the 77% of seniors not enrolled in a Medicare Advantage plan. The new law levels the playing field by gradually eliminating Medicare Advantage overpayments to insurance companies while protecting guaranteed Medicare benefits. Instead of overpayments similar to the last several years to insurance companies, the new law will base payments on the local cost of providing guaranteed Medicare services. Medicare Advantage plans will also receive new bonus payments based on performance (e.g., for providing care based on preventing diseases before they start, and care that stops diseases from getting worse). Participating health plans will also be prohibited from charging higher out-of-pocket costs to seniors than traditional Medicare for similar services.

Over the next 20 years, Medicare spending will grow at a slower rate, as a result of eliminating waste, fraud, and abuse. This will extend the life of the Medicare Trust Fund by 12 years and provide cost savings to Medicare beneficiaries. In 2018, seniors can expect to save, on average, almost $200 per year in premiums and over $200 per year in co-insurance compared to what they would have paid without the Affordable Care Act. Upper-income beneficiaries ($85,000 of annual income for individuals or $170,000 for married couples filing jointly) will pay higher premiums. This will impact about 2% of Medicare beneficiaries.

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