Senate Panel Members Back Insurers On Medicare Plans

Senators from both parties praised the wellness services and broad benefit menus that Medicare Advantage programs offer.

"Beneficiaries now have choices that can provide them with lower out-of-pocket costs and benefits not otherwise available in traditional Medicare," Grassley said.

Several weeks ago, members of the House Ways and Means Committee health subcommittee were far more critical of the Medicare Advantage program.

Rep. Pete Stark, D-Calif., chairman of the subcommittee, and several witnesses talked about shifting cash that could be used to avert a scheduled 10% cut in Medicare payments to physicians to pay for an expansion of the State Children's Insurance Program.

Stark, the Congressional Budget Office, the Medicare Payment Advisory Commission and AARP, Washington, say the Medicare Advantage program costs the federal government about 12% more than the traditional Medicare fee-for-service program.