Perspective               

HHS Introduces Medicare PPOs

Consumer advocates are concerned over the Bush Administration's continued push to expand the failed Medicare+Choice program, which provides people with Medicare the option to choose a private Medicare plan, such as a Medicare HMO. The Department of Health and Human Services announced recently a new private Medicare plan option, Medicare Preferred Provider Organizations (PPOs).

Thirty-three new PPOs serving parts of 23 states will be available in January 2003. With PPOs, health care coverage is low-cost as long as you use doctors and hospitals in the PPO's network. You can use doctors or hospitals outside of the PPO's network, but you have to pay extra. It is likely that people who join PPOs and go out of network more than a few times a year will pay more for their health care than if they were enrolled in Original Medicare and bought supplemental insurance, or Medigap.

The Bush Administration believes that PPOs will help people with Medicare by offering them more health plan choices. But consumer advocacy groups warn that PPOs will have the same problems as Medicare HMOs, which have a history of instability that makes consumers vulnerable to losing plan health coverage altogether, rising premium costs, and doctor and hospital turnover.

For a list of locations where PPOs will be available, go to www.hhs.gov/news/press/2002pres/20020827att.html.

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