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Celerity

(52,609 posts)
11. it was part of the Balanced Budget Act of 1997, and was signed into law by Bill Clinton
Sat Jan 4, 2025, 09:55 AM
Jan 2025
https://www.medicarerights.org/pdf/medicare-advantage-101-legislative-milestones.pdf

The Balanced Budget Act of 1997

The Balanced Budget Act of 1997 (BBA 97) created Medicare Part C—originally called
Medicare+Choice and now known as Medicare Advantage—and made significant changes to
Medicare’s interactions with managed care plans.

Responding to concerns about solvency, overpayments, and favorable selection, the BBA 97
reworked TEFRA’s payment formula, established new risk-adjustment measures that focused
on health status, and created an annual enrollment period to limit frequent mid-year changes.

It also authorized new types of private plans to participate: Preferred-provider organizations
(PPOs), provider-sponsored organizations (PSOs), and private fee-for-service (PFFS) plans.

Although the reforms were expected to increase enrollment 15% by 2005, plan market
participation contracted, enrollment numbers fell, and benefit packages shrank. Subsequent
analysis attributes these shifts to several factors, including “natural market evolution and
shakeout after a period of rapid growth…Medicare policy changes, the backlash against
managed care, and growth projections that were probably always unrealistic.”


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Balanced Budget Act of 1997

https://en.wikipedia.org/wiki/Balanced_Budget_Act_of_1997

The Balanced Budget Act of 1997 (Pub. L. 105–33 (text) (PDF), 111 Stat. 251, enacted August 5, 1997) was an omnibus legislative package enacted by the United States Congress, using the budget reconciliation process, and designed to balance the federal budget by 2002.

This act was enacted during Bill Clinton's second term as president. According to the Congressional Budget Office, the act was to result in $160 billion in spending reductions between 1998 and 2002. After taking into account an increase in spending on Welfare and Children's Healthcare, the savings totaled $127 billion. Medicare cuts were responsible for $112 billion, and hospital inpatient and outpatient payments covered $44 billion. In order to reduce Medicare spending, the act reduced payments to health service providers. However, some of those changes to payments were reversed by subsequent legislation in 1999 and 2000.

Overview

The Balanced Budget Act was introduced on June 24, 1997, by Republican Ohio Representative John R. Kasich. There were three short titles that the act was also known as in the House of Representatives. In the House, this act was also called the Child Health Assistance Program of 1997, the Expansion of Portability and Health Insurance Coverage Act of 1997, and the Veterans Reconciliation Act of 1997.

The act changed key components of Medicaid that help to improve and expand Medicaid itself. The bill proposed a plan to get federal Medicaid savings, federally, in three areas. The bill also aimed to expand federal and state authority within the Medicaid system. The bill also established two new block grants to child health and to the states. These grants helped to bring in money to Medicaid systems for children and people in the states being funded to use to improve their Medicaid systems. It also created the State Children's Health Insurance Program which gives low income children healthcare coverage. The law introduced what would later be named Medicare Advantage under the name Medicare+Choice.

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Recommendations

8 members have recommended this reply (displayed in chronological order):

I have been against Medicare Advantage Plans from the beginning. William769 Jan 2025 #1
You have a choice - HMO or PPO. pazzyanne Jan 2025 #7
You can only choose from what is offered marybourg Jan 2025 #21
That is just plain sad! pazzyanne Jan 2025 #23
Thanks for this post. Just Jerome Jan 2025 #2
Basic Medicare A & B is the only medical "insurance" I trust. Trust_Reality Jan 2025 #46
Got a call yesterday about it. multigraincracker Jan 2025 #3
I still get about 5 calls a day about Medicare Advantage on the land line KS Toronado Jan 2025 #6
Yep. Don't get spoofed. multigraincracker Jan 2025 #37
I'm guessing Insurance companies are probably the biggest one KS Toronado Jan 2025 #43
They use confusion and tricks to sell their plans SCantiGOP Jan 2025 #45
Even while I was working, I always went with multigraincracker Jan 2025 #49
We must stop the expansion of Medicare Advantage!! OrlandoDem2 Jan 2025 #4
You may want to study traditional Medicare also. pazzyanne Jan 2025 #10
Depends on the supplement plan. I rung up close to $1 million for cancer care ... Auggie Jan 2025 #22
Supplement plans were priced out of my budget. nt pazzyanne Jan 2025 #25
Sorry to hear that. Good luck. Auggie Jan 2025 #38
Your state might have a medical assistance or discount program. Trust_Reality Jan 2025 #47
Supplement plans are affordable and cover Voltaire2 Jan 2025 #28
That's not what DownriverDem Jan 2025 #32
For the best advise you go to your local COA, multigraincracker Jan 2025 #39
It will cost more than MA. The difference is what happens when you actually need coverage. Voltaire2 Jan 2025 #55
Everyone I know in the Medicare age bracket is on traditional Medicare. OrlandoDem2 Jan 2025 #12
Add me to that list. Not a doctor, but very happy with traditional Medicare. Trust_Reality Jan 2025 #48
Can someone find out who in our political system approved of Medicare Advantage Stargazer99 Jan 2025 #5
it was part of the Balanced Budget Act of 1997, and was signed into law by Bill Clinton Celerity Jan 2025 #11
Why is business such a Welfare Queen? I wasn't too impressed with Clinton as a Demo Stargazer99 Jan 2025 #13
Third way. Triangulation. paleotn Jan 2025 #30
Clinton represented the ascendancy of the Voltaire2 Jan 2025 #31
Also apparently happily signed snot Jan 2025 #54
Passed the House 346-85 & the Senate 85-15 MichMan Jan 2025 #17
weird mix dsc Jan 2025 #53
What are the options? VGuerra276 Jan 2025 #8
I would recommend a Medicare Advantage Plan that is a PPO. pazzyanne Jan 2025 #15
Yeah. I'm on a PPO. However, it's through my husband's work. (TRS) The Rx plan is bundled in and is good. LeftInTX Jan 2025 #44
You can switch back to regular Medicare Farmer-Rick Jan 2025 #18
+1,000,000 Auggie Jan 2025 #24
How much is your DownriverDem Jan 2025 #29
The Plan G was $166.00 a month in 2024 ... Auggie Jan 2025 #41
However medigap supplemental insurance plans Voltaire2 Jan 2025 #34
We'll, that's another scam Farmer-Rick Jan 2025 #40
See if you have a local Commission On Aging or multigraincracker Jan 2025 #42
Excellent post. Thank you surfered Jan 2025 #9
No, Trump's not going to cut funding for Medicare... Trueblue Texan Jan 2025 #14
Well, he is a Republican. That's what they do. That's all they do. paleotn Jan 2025 #33
When called I ask if this is Medicare disadvantage Greyhead Jan 2025 #16
I've been on regular Medicare Farmer-Rick Jan 2025 #19
And all that sales, advertising and dogged pursuit of every single, solitary Medicare eligible human costs money. paleotn Jan 2025 #36
There has been Medicare fraud for a long time. milestogo Jan 2025 #20
GOP is not Pro-Life Oneear Jan 2025 #26
Blue Cross Blue Shield of Michigan DownriverDem Jan 2025 #27
Kick dalton99a Jan 2025 #35
If you can afford it then traditional Medicare plus a Medicare supplement plan is the way to go. totodeinhere Jan 2025 #50
I am still getting calls to try to sell me on one of these plans LetMyPeopleVote Jan 2025 #51
This message was self-deleted by its author Wifes husband Jan 2025 #52
Important story. Thanks Celerity. applegrove Jan 2025 #56
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