Medicare Companies 'Stealing' $140 Billion From Patients, Democrat Says

Bob Lorinser, a congressional candidate in Michigan, launched a blistering attack against Medicare Advantage, telling Newsweek that the healthcare program was a "scam" and that it overcharges Americans by billions of dollars and instead thinks the country will be better served by a non-profit national health insurance system.

Lorinser, who running for the congressional seat from Michigan's first district, which includes parts of northern Michigan and upper peninsular areas, is currently competing in the primary as a Democrat. The seat is at the moment being held by Republican Representative Jack Bergman.

He told Newsweek that his background as a family doctor makes him qualified to address the issue.

"The Medicare Advantage scam allows for-profit corporations to make as much as 20% in pure profit, compared to Medicare's 2% administrative cost without profit," Lorinser said in an emailed response to a request for comment.

He had earlier on Tuesday posted on X, formerly Twitter, accusing Medicare Advantage of being a scam, a claim he repeated in his comments to Newsweek.

"Medicare Advantage is a prime example of how the insurance industry's insatiable greed is ruining the American healthcare system," he said. "Medicare Advantage overcharges taxpayers potentially by up to 35% or $140 billion, effectively stealing from American patients."

Medicare Advantage plans, which are different from original Medicare offerings, acquired the name in the early 2000s as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The health plans typically come from private companies that have contracts with Medicare. As of 2023, nearly 31 million Americans are part of these plans, making up about half of people eligible for Medicare, according to health policy organization KFF.

Lorinser alleged that the profit insurance companies were "stealing $140 billion from American patients every year."

He added: "We have a choice. Because it saves taxpayer money with only a 2% administrative cost, we must demand Medicare for All and eliminate Medicare for profit."

He was referring to a plan favored among a particular section of the Democratic Party that wants to expand Medicare-like health programs to all Americans. Independent Senator Bernie Sanders from Vermont has been a big proponent of the plan.

Democratic representatives Pramila Jayapa from Washington and Debbie Dingell from Michigan co-introduced legislation in 2021, in an attempt to Medicare for All law of the land. The act was geared towards expanding Medicare to give Americans health benefits in a single-payer program.

"Medicare For All will build an inclusive health care system that won't just open the door to care for millions of our neighbors, but do it more efficiently and effectively than the one we have today," Representative Dingell said at the time.

Republicans have been critical of the proposal arguing that it should not be the government's role to provide healthcare.

Polls do suggest, though, that Americans are partial to having the government be involved in making sure that Americans have health services. Gallup found, in a survey released earlier this year, that 57 percent think "the government should be responsible to ensure coverage for all Americans" while 40 percent were against such a move.

The differences were largely explained along partisan lines—88 percent of Democrats said it was the government's responsibility that Americans have healthcare while only 28 percent of Republicans felt that way.

But at the same time, 53 percent of those surveyed preferred a private healthcare system with 43 percent supporting a government-run approach.

Lorinser told Newsweek that he will advocate for a Medicare for All health system if elected to Congress.

"The U.S. needs a publicly-funded, non-profit national health insurance program that fully covers all medical expenses for every American citizen. To achieve this, we need a doctor in the House who strongly supports Medicare for All," he said.

Update 12/28/23, 3:55 p.m. ET: This article was updated to include fresh comments from Bob Lorinser.