Privatizing Medicare/Victimizing Seniors

No good can come of legislating in the middle of the night behind closed doors, unless you stand to make a good buck selling off the future of our senior citizens. I wonder what an appropriate payoff would be. $100,000? $1 million? $10 million? How much of a bribe would it take to steal $54 billion? We won't talk about the morality of our legislators because I am sure they are all are all overflowing with the most sacred of family values.

It was the winter of 2003 when Congress, in the dead of night, overhauled Medicare. But buried inside the bill was another deal — one that CBS News investigation has discovered was not necessarily a benefit for seniors. A large portion of one of the most successful public programs in history was quietly placed in the hands of private insurance companies. Three independent reports found private insurance companies are paid, on average, 12 percent more than what it would cost the federal government — in some cases, 50 percent more.

An independent report found when it comes to the fastest-growing plans, known as private fee-for-service, half of that extra money goes back to the insurance companies. All these private Medicare plans are expected to cost taxpayers an additional $54 billion over the next five years.

"Taxpayers are losing; people in Medicare are losing," Hayes said. "And the structure of Medicare as a national treasure that we need to rely on moving forward, is being undermined."
So much so that key Congressional Democrats now want to cut payments to private plans. The insurance industry is fighting back with a direct mail campaign urging seniors to contact their representatives. source: CBS News