But what we get for our money varies dramatically, depending on what part of the country we live in.  In parts of Florida, New York, California, Michigan, and Arizona, seniors get prescription drugs, dental, vision and hearing services free of any additional premiums, while seniors in Minnesota and many other parts of the country have to pay high supplemental premiums (almost $300 a month) to get any drug coverage benefits like dental, vision and hearing services often times aren’t available at all.  That’s unfair!

 Here in Minnesota, the Minnesota Senior Federation is organizing a nationwide grassroots effort to change the Medicare reimbursement formula and bring justice to Medicare.  Your help is needed to make the campaign a success.

 The Issue: A funding formula that punishes beneficiaries, doctors, and hospitals in areas where health care costs are low and rewards areas with high health care costs resulting from overspending, overuse, and inefficiencies. Compare, for example, the difference in Medicare payments to HMO’s for a senior living in Hennepin County, Minnesota, and a senior living in Dade County, Florida. In 2005, the Minnesota HMO receives about $654 per beneficiary per month while the Florida HMO receives $795 per beneficiary per month!  While the cost of delivering health care across the country is said to vary about 15 percent, the reimbursement by Medicare to physicians, hospitals and HMOs varies 300%!  That’s unfair!  

The Result: The Minnesota senior has to pay an additional premium for vital non-Medicare covered services; an average of $94 per month in addition to the Part B premium of $78.20 has no prescription drug coverage, and has co-pays for office visits. The Florida resident, meanwhile, pays no premium has no co-pays for office visits, and receives free prescription drug coverage.

The Bottom Line: Minnesota seniors and health care providers are being punished because we have an efficient health care system.  Clearly, this formula flunks the "Fairness Test" and must be changed.

Access Crisis: The “Medicare Crisis” in Minnesota has even greater implications for health care access for all persons on Medicare.  Because of low reimbursement rates, an increasing number of physicians have stopped accepting Medicare patients. The inequity of reimbursement rates is also causing an access crisis in rural Minnesota.  Fee-for-service providers are disproportionately penalized in communities where Medicare spending is already lower than average.  As a result some rural hospitals may close and the ability of communities in greater Minnesota to attract and keep physicians will be jeopardized. 

The time to act is now!  The Medicare Justice Coalition (MJC) has been created to demand justice from Congress, which will only act on Medicare equity after a strong consumer voice is heard.