FARPOINT.FACTOID

According to estimates by the Centers for Medicare and Medicaid Services, in 2005, the cost to the federal government for a senior on traditional Medicare was $6,527, on average.

When seniors enrolled in a Medicare Advantage plan, the 2005 payment from the federal government to that insurance company was $7,851 per senior — $1,300 more than it cost the government to pay for a senior's care. In 2006, the reimbursement jumps to $8,223. If the plan offers a drug benefit, the feds fork over an additional $1,100 per year to the insurance company, according to the agency.

So if it costs more to cover seniors through private-sector programs than through traditional Medicare plans, why did Congress expand opportunities for private-sector coverage? One of the main arguments was that more competition in the marketplace would drive down the cost of health care.

But that doesn't mean taxpayers will pay less for seniors' care. If an insurance company holds down health-care costs for seniors, the federal government will continue to pay those companies a set amount, which increases each year.

"Savings" mean higher profits for insurance companies.

--SOURCE

they LIED. why can't people see that? republicans LIE to get their way. they have to because if they didn't they wouldn't get what they want.