To the editor:
MAGA Republicans haven’t been shy about their desire to cut spending on Medicaid and privatize Medicare.
Under their leader, the former president, they found a loophole in the Affordable Care Act which will permit them to destroy Medicare and Medicaid without the political inconvenience of congressional action.
The ACA has a provision that permits the establishment of pilot programs without congressional approval. Under this provision, direct contracting entities and ACO Reach entities were established. Unlike Medicare Advantage, direct contracting and ACO Reach entities have no requirements to spend a defined portion of the money they receive from the federal government on health care.
The Center for Medicare & Medicaid Services estimates these entities are only spending 60 percent of the money they receive on health care for patients. The rest of the money is used to pay for administration, chief executive salaries and profit.
In 2022, big insurance companies revenue reached $1.25 trillion, and profits soared to $69.3 billion. At this rate, the clever lads will bankrupt the Medicare Trust Fund in no time, effectively forcing those who can afford it to purchase private insurance.