State Retirees Would Lose Under Scott’s CIGNA “Medicare Advantage” Proposal

Fact Sheet #3

VRSEA represents 8,000+ State retirees and their dependents.  On their behalf, we oppose the Administration’s proposal to move State retirees into a Medicare Advantage plan.   We believe this issue may be taken up in the 2023 Legislative session.  We are asking legislators who represent State retirees and their families to understand the adverse impacts this proposal would have on these elderly constituents.  Please support your constituents against any change in their retiree health care benefits without their knowledge or consent.   

Medicare Advantage Plans Are Being Sued

CIGNA is currently being sued by the U.S. Department of Justice for fraud.  Medicare Advantage plans are under fire nationally for lying to regulators, using restrictive utilization management practices, stinting on care, and fraudulent practices. 

United States Files Civil Fraud Lawsuit against Cigna for Artificially Inflating Its Medicare Advantage Payments: “As alleged, CIGNA obtained tens of millions of dollars in Medicare funds by submitting to the Government false and invalid diagnoses for its Medicare Advantage plan members.” (Southern District of New York United States attorney’s Office Press Release October 17, 2022)

The Cash Monster Was Insatiable’: How Insurers Exploited Medicare for Billions

“By next year, half of Medicare beneficiaries will have a private Medicare Advantage plan. Most large insurers in the program have been accused in court of fraud. . .  New York Times review of dozens of fraud lawsuits, inspector general audits and investigations by watchdogs shows how major health insurers exploited the program to inflate their profits by billions of dollars.” (New York Times October 8, 2022)

“Is Medicare Advantage really “better” than traditional Medicare?  According to the Kaiser Family Fund report published (9/6/2022) and its analysis of recent studies, coupled with our own experience serving Medicare beneficiaries who need care for significant illnesses or injuries, the answer is an unequivocal “no”.  (The Center for Medicare Advocacy 9/21/22 https://medicareadvocacy.org/kaiser-family-foundation-releases-report-regarding-differences-between-traditional-medicare-and-medicare-advantage/)

Contact:          Shelley Martin, VRSEA President, at (802) 595-1888, or 2020VRSEAwork@gmail.com

                        Bridget Morris, VRSEA Lobbyist, at bmorris@vtlobbyist.com