Organizing Beat Back Corporate Greed in Medicare Advantage Rate Hike

People’s Action today released the following statement from People’s Action Health Care for All Campaign Director Aija Nemer-Aanerud in response to the Biden administration’s final notice of a 3.7% rate increase in 2025 for so-called “Medicare Advantage” plans. The announcement represents a victory over greedy insurance corporations that overcharge the Medicare program, engage in systemic denials of care to increase profits–and had lobbied the administration for a larger rate increase.

“The private insurance industry is used to getting its way, but this year we out-organized them.

“Medicare is one of the most popular government programs because it delivers health care to people when and where they need it. Private insurance companies like UnitedHealthcare spent millions in advertising and lobbying in Washington to demand more of our public money for privatized, so-called ‘Medicare Advantage’ plans.

“We countered their lobbying by helping people share their stories with lawmakers about how Medicare Advantage plans harmed them by denying care when they needed it most. We commend the Biden administration for listening to our people and refusing to cave to the insurance lobby’s demands.

“We urge President Biden to do more to rein in abuse of the Medicare program by private corporations and reinvest public funds into expanding and strengthening traditional Medicare.”

Medicare Advantage is a privatized form of Medicare in which the federal government gives Medicare funds to private health insurers to administer Medicare plans. These corporations use much of this money to invest heavily in advertising while skimping on care. These privatized plans create opaque bureaucracies and extraordinary fees. The corporations that run these private plans profit while denying care, spending 15-25% less than traditional Medicare on their enrollees' medical services while being paid 23% more.