The Great Northern States Health Care Initiative is a group of people from Minnesota and Wisconsin who have come together for the purpose of advocacy for a better health care system in our respective states and the nation. Our main objective is education of ourselves and others in our communities on the imperatives of a single payer health care system.
641-715-3900, Ext. 25790#
Monday, April 25, 2022
Stop the Privatization and Reverse It
Privatization of Medicare
An experiment with Medicare called a “direct contracting model” (DCE) was begun during the Trump
administration. It allowed for-profit giants to take over portions of Medicare.
A complete privatization of Medicare could happen by 2030. The Biden Administration could stop
this from progressing but hasn’t. About 250 health organizations complained to the federal agencies
responsible for Medicare, demanding a halt to the operation of these “Direct Contracting Entities”
(DCEs). The complaints caused the agencies to rename the privatization scheme from DCEs to
“Accountable Care Organization (ACO) Reach.”
The for-profit companies, dubbed DCEs or ACO Reach, get paid monthly by the Centers for Medicare
and Medicaid Services (CMS) to cover a specified portion of a patient's medical care. This is a major
shift away from traditional Medicare. Traditional Medicare pays health care providers directly.
During this current experimental period, Medicare patients could be put into an ACO
Reach without their knowledge or permission!
ACO Reach is designed to drive up costs for patients and maximize corporate profits. President Biden
needs to end this program now. ACO Reach corporations are allowed to keep the funding they don’t
spend on patient care. That motivates these secret, for-profit middlemen to skimp on patient care. In
February 2022, an expert testified before a U.S. Senate subcommittee that this privatization
would bankrupt the hospitalization part of Medicare by 2026, and Medicare itself by
2030.
This insidious attack on Medicare allows ACO Reach corporations to insert themselves between
doctors and patients and use our Medicare dollars to pad their profits.
Seniors value traditional Medicare because it is simple, efficient, and universal. Right now, these
changes are happening at a small scale, but the privatization experiment is set to expand this year
unless President Biden takes action to stop it.
Contact the President, your Senators, and Congressional Rep; tell them to outlaw ACO Reach. Keep
traditional Medicare strong and intact. No privatization!
https://www.commondreams.org/news/2021/11/30/congress-asleep-switch-biden-continues-
trump-era-ploy-privatize-medicare
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