Medicare Health Plan Withdrawals Confirmed

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Medicare Health Plan Withdrawals Confirmed

Thu Sep 26, 5:36 PM ET

NEW YORK (Reuters Health) - Twenty-three health plans will drop out of

Medicare or reduce their service areas in 2003, displacing nearly 200,000

seniors across America, the federal government has confirmed.

The US Centers for Medicare and Medicaid Services (CMS) released its tally

of " non-renewing " health plans and affected beneficiaries Wednesday

afternoon. The total number of seniors affected by the upheaval--198,315 to

be precise--roughly matches an earlier estimate by the American Association

of Health Plans.

Since 1999, the embattled Medicare+Choice program has suffered a rash of

health plan dropouts. HMOs blame inadequate government reimbursement for the

decision to leave the program.

CMS Administrator Tom Scully said the 2003 results are " better than

expected " since far fewer plans are leaving Medicare next year than in the

previous two years. Nearly 5 million Americans receive healthcare through

the program. But unless Congress passes legislation this year to improve

Medicare+Choice payment rates, " even more seniors and disabled Americas will

continue to lose their existing prescription drugs or other medical

services, " he warned.

About 29,000 seniors will be forced to return to traditional,

fee-for-service Medicare, CMS said. Others have an option to enroll in

another Medicare+Choice plan.

Every displaced beneficiary will receive a letter by October 2nd explaining

their options, CMS said.