Recently released studies show that the costs and complexity of private health insurance plans have increased in recent years without significantly improving care. Nevertheless, enrollment in these plans, which serve nearly a quarter of all Medicare recipients, has doubled over the past five years, to 10.1 million. Although the government pays 12-17% higher on these plans than on traditional Medicare, the Bush administration and insurance executives have continued to support their use. The original idea behind the private plans was to increase efficiency, but thus far, the most efficient plans have not been the most popular. President-elect Barack Obama has called the higher prices ?just a giveaway? to private insurers, and secretary of health and human services hopeful Tom Daschle claims that Medicare is threatened by overpaying private insurers.
See "Studies say private Medicare plans have added costs, for little gain", Robert Pear, The New York Times, November 23, 2008