Statement by HCFA Administrator Nancy-Ann DeParle on HMO Withdrawals

Contact: HCFA Press Office, 202-690-6145

WASHINGTON, July 1 /U.S. Newswire/ -- The following is a statement by HCFA Administrator Nancy-Ann DeParle on HMO withdrawals:

"We're disappointed that HMOs are making decisions that will force some Medicare beneficiaries to change their health coverage and at the same time scaring them about their Medicare benefits.

"But whatever decisions HMOs make about doing business with Medicare, Medicare will always be there for every beneficiary, with the quality health care each one deserves and accurate information for making choices.

"Let's be clear. Every managed care plan that wants to serve Medicare beneficiaries will be paid more in 2000 than in 1999 -- about 5 percent on average. Many HMOs have entered Medicare in the last year.

"Seniors and disabled Americans deserve a strong Medicare program. We're committed to making sure they have health care -- whether they choose managed care or traditional fee-for-service. The President's comprehensive initiative will strengthen and modernize Medicare and prepare it for the 21st century through fee for service reforms, true competition among managed care plans, savings contributions from providers and beneficiaries alike, a new drug benefit, the elimination of all copayments and deductibles for all preventive services, and an explicit dedication of 15 percent of the surplus to extend the life of the trust fund."

-0- /U.S. Newswire 202-347-2770/ 07/01 17:58

Copyright 1999, U.S. Newswire

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