Labor Union Blog

Supporters of the Bush administration’s Medicare reform have touted private plans as being a big bargain for seniors. But the truth is that the private plans, known as Medicare Advantage, cost seniors more, congressional investigators say.

The New York Times reports today that a study by the Government Accountability Office (GAO) found many people in private Medicare plans face higher costs for home health care, nursing homes and some hospital stays than the traditional government-run Medicare program. In fact, the report shows the government will spend an estimated $54 billion in extra costs for Medicare Advantage beneficiaries from 2009 through 2012.