News Headlines Article

U.S. Proposes Cuts to Rates in Medicare Payments
New York Times

The Obama administration on Friday proposed cuts in Medicare payment rates for managed-care plans serving more than one-fourth of all beneficiaries, and Republicans immediately pounced on the proposal, which appears likely to become a significant issue in this year’s midterm elections.

The proposed reductions were larger than the administration had indicated in guidance given to the insurance industry in December. Jonathan Blum, a top Medicare official, cited the “historically low growth in Medicare per capita spending” as a reason for the proposal.