John Edwards photo

Edwards Campaign Press Release - Edwards Introduces Plans To Stand Up To Big Insurance Companies That Hurt Rural Seniors

October 25, 2007

Instead of defending lobbyists and corrupt insiders, Edwards will stand up for regular Americans as part of seven-day "Stand Strong" campaign

Chapel Hill, North Carolina – Today, as Senator John Edwards traveled across rural Iowa, he kicked-off a seven-day "Stand Strong" campaign by outlining proposals to protect health care for rural seniors by standing up to big insurance companies that are overcharging taxpayers, reducing rural health care choices and scamming seniors. Edwards grew up in small, rural towns and is running for president to represent hard-working families, like the ones he grew up with.

During the "Stand Strong" campaign Edwards will discuss his bold and detailed proposals for health care reform, smart and safe trade policies, ending the war in Iraq and restoring America's moral authority in the world. The highlight of the week will be a major policy address tomorrow on corporate responsibility in which Edwards will call for updating the social compact with hard-working Americans to protect them from abuse by corporations and help them achieve financial security in the new economy.

"Real strength comes from standing up for the millions of American families who don't have a voice," said Edwards. "We need a leader in the White House who has the strength and courage to stand up and fight for regular Americans rather than someone who defends the lobbyists that are destroying the better America we all believe in."

Edwards discussed how Medicare Advantage – expanded by the law that created the privatized prescription drug benefit – provides huge subsidies to insurance companies to offer private-fee-for-service coverage for seniors. He explained how the program wreaks havoc on rural health care by overpaying private HMOs, destabilizing rural health care providers, reducing choice for rural Americans, and encouraging questionable marketing and insurance tactics.

To address these problems, Edwards proposed eliminating the overpayments to private insurers and investing the savings in ensuring low-income and rural seniors have access to the care they need. Edwards also proposed cracking down on marketing abuses by empowering state and federal regulators to set and enforce standards for insurance agents' conduct.

"As president I will stand strong for the American people and take on the big insurance companies that are hurting rural seniors," Edwards continued. "Misguided Medicare giveaways to private insurance companies are jeopardizing health care for older Americans, particularly in rural areas. We must reform this program to ensure that every American gets the health care that he or she needs."

Edwards' proposals to reform the Medicare Advantage program build on his plan to provide universal health care for all Americans. Edwards was the first presidential candidate to propose a plan for quality, affordable health care for every man, woman and child in America. Under his plan, the government will make insurance affordable through new tax credits and by leading the way toward more cost-effective care. Businesses will cover their employees or help pay their premiums. New regional "Health Care Markets" will give individuals, families and businesses purchasing power and a choice of quality plans, including one public plan. Finally, once these steps have been taken, all American residents will be required to take responsibility and get insurance.

Edwards would pay for these reforms primarily by repealing the Bush tax cuts for families making more than $200,000 a year. And to ensure that health care reform is a legislative priority, Edwards will submit legislation on the first day of his administration that ends health care coverage for the president, all members of Congress, and all senior political appointees in both the executive and legislative branches of government on July 20th, 2009 unless universal health care legislation that meets four specific, non-negotiable principles has been passed by that date.

Further details of Edwards' plan for "Taking on Big Insurance Companies that Hurt Rural Seniors" are included below.


Taking on Big Insurance Companies that Hurt Rural Seniors

Misguided Medicare giveaways to private insurance companies are jeopardizing health care for rural older Americans. The Medicare Advantage program – expanded by the law that created the privatized prescription drug benefit – provides huge subsidies to insurance companies to offer private-fee-for-service coverage for seniors. And while the private insurance companies collect billions from taxpayers, they are also squeezing the already-stretched provider network in rural America. The program has been almost designed to wreak havoc – in the form of waste, fraud and abuse – on rural health care.

  • Waste: Sending Billions from Taxpayers to HMOs: The government pays Medicare Advantage private plans an average of 12 percent more (and up to 19 percent more for the fee-for-service plans that predominate in rural areas) than it does for the same services in traditional Medicare. In Iowa, the average overpayment is 24 percent. Nationally, these overpayments total more than $10 billion annually. [CBPP, 2007; CBO, 2007]
  • Fraud: Questionable Marketing and Insurance Tactics: A review of 91 government audits found that tens of thousands of seniors have been victimized by scam sales tactics or cheated out of benefits by the private insurance companies that operate Medicare Advantage and Medicare prescription drug insurance. One insurance agent scam tricked beneficiaries into signing up for private plans by telling them Medicare was going out of business. Another agent sold a plan to an Iowa senior even though it had no providers in the senior's vicinity. [NY Times, 10/6/07; ACJF, 2007; Iowa Insurance Div., 2007]
  • Abuse: Squeezing Rural Health Care Providers and Reducing Choice: Reimbursement rates paid by private plans are sometimes lower (even though insurance profits are higher) than they were in traditional Medicare. By giving private insurers greater bargaining power with rural doctors and hospitals, the Medicare Advantage program has upset an already fragile health care environment and threatens the survival of some providers. In addition, some providers are declining to accept Medicare Advantage coverage. This, combined with the decline in rural providers, means fewer health care options in rural areas. [NACRHS, 2007; KFF, 2007]

The Edwards Plan to Protect Rural Health Care for Seniors

Building on his plan for true universal health care, John Edwards will stand up to the big insurance companies that are ripping off taxpayers, reducing rural health care choices and ripping off seniors.

  • Stop the Overpayments: Edwards will end overpayments to Medicare Advantage private insurers by paying rates for the private plans that are similar to traditional Medicare's costs.
  • Invest Savings in Strengthening Medicare: Edwards will use savings from eliminating overpayments in part to make sure that low-income Medicare beneficiaries have access to the care they need and address funding and reimbursement formulas that are unfair to rural areas.
  • Crack Down on Marketing Abuses: Edwards will empower state and federal regulators to set standards for insurance agents' conduct and enforce them, ending rules that tie officials' hands.

John Edwards, Edwards Campaign Press Release - Edwards Introduces Plans To Stand Up To Big Insurance Companies That Hurt Rural Seniors Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/294163

Simple Search of Our Archives