February 18, 2015

The Honorable Marilyn B. Tavenner

Administrator, Centers for Medicare & Medicaid Services
Department of Health and Human Services
200 Independence Avenue, SW
Washington, D.C. 20201

Dear Administrator Tavenner:

On behalf of the undersigned business organizations from across the country, we urge you to
protect the Medicare Advantage (MA) plans that more than 16 million Medicare-eligible
beneficiaries favor and consistently re-elect for health care coverage each year. These plans
are a valued form of coverage for employees and employers and represent the future of health
care delivery as the system moves toward customized, integrated care. Because beneficiaries
prefer MA plans, enrollment is projected to grow to nearly 22 million seniors by 2020.
Unlike original Medicare fee-for-service (FFS), MA plans provide stronger care coordination
services and encourage better health outcomes for enrollees. Some of the superior health
outcomes enjoyed by MA plan enrollees include shorter hospital stays, fewer hospital
admissions, and 13-20 percent lower readmissions rates. Additionally, MA plan enrollees enjoy
innovative benefit and coverage services that are not offered under FFS and uniquely meet the
needs of this growing population, including in-home clinical visits with nurse practitioners and
nurse hotlines. Its no surprise that more than 90% of seniors enrolled in MA are highly satisfied
with their coverage.
Not only do employers and employees prefer MA plans because of the innovative integrated
care provided, but they also appreciate that these plans are more affordable than coverage
through original Medicare FFS. Data shows that MA beneficiaries spend an average of $2,200
annually on health care coverage compared to $4,000 for supplemental coverage in Medicare
FFS. MA plans provide beneficiaries with financial security demonstrated by the fact that more
than half of MA enrollees had an out-of-pocket maximum of $5,000 or less in 2014.
Annual cuts to the MA program continue to jeopardize employers, employees, providers and
patients choices in coverage under Medicare. MA plans have been cut by approximately 14
percent since 2010, including a 10 percent cut over the last two years alone. Employees and
employers are experiencing the downstream impact of these cuts through an erosion of MA
benefits, increased out-of-pocket costs, and reduced access to providers and plan services. For
the first time since MA plans have been available, roughly half a million Medicare beneficiaries
will be unable to access an MA alternative this year. Alarmingly, there will be entire counties in
the United States where the MA program will no longer be available at all.
We urge CMS and Congress to protect Americas senior employees and retirees from any
further coverage harm and disruption that will undoubtedly occur if additional MA cuts are made
during the upcoming rate setting process.

Sincerely,
Arizona Chamber of Commerce and Industry
Arizona Manufacturers Council
Associated Industries of Florida
Business Council of Alabama
Business Council of New York State, Inc.
Business and Industry Association of New Hampshire
California Chamber of Commerce
Commerce and Industry Association of New Jersey
Connecticut Business & Industry Association
Delaware State Chamber of Commerce
Florida Chamber of Commerce
Illinois Chamber of Commerce
Illinois Manufacturers Association
Indiana Chamber of Commerce
Kentucky Chamber of Commerce
Las Vegas Metro Chamber of Commerce
Maine State Chamber of Commerce
Maryland Chamber of Commerce
Michigan Chamber of Commerce
Minnesota Chamber of Commerce
Missouri Chamber of Commerce
National Association of Manufacturers
Nebraska Chamber of Commerce & Industry
Nevada Manufacturers Association
New Jersey State Chamber of Commerce
New Mexico Association of Commerce and Industry
Ohio Chamber of Commerce
Ohio Manufacturers Association
State Chamber of Oklahoma
Pennsylvania Chamber of Business and Industry
Puerto Rico Chamber of Commerce
Rhode Island Chamber of Commerce Coalition
South Carolina Chamber of Commerce
Tennessee Chamber of Commerce and Industry
Texas Association of Business
The Chamber of Reno, Sparks, and Northern Nevada
U.S. Chamber of Commerce
Virginia Chamber of Commerce
West Virginia Chamber of Commerce
Wisconsin Manufacturers & Commerce