H.R. 7803: Save Medicare Act

This bill, known as the "Save Medicare Act," proposes several important changes to the Medicare program, particularly focusing on the segment known as Medicare Advantage. Here are the key components of the bill:

1. Renaming of Medicare Advantage

The legislation establishes a new program called the Alternative Private Health Plan program. This program will replace the current Medicare Advantage program under Part C of Title XVIII of the Social Security Act. References to Medicare Advantage, previously known as Medicare+Choice, will now be regarded as references to the Alternative Private Health Plan.

2. Transition Period

To ensure a smooth transition and avoid confusion among beneficiaries and providers, the Secretary of Health and Human Services is required to implement a transition plan that allows the phasing out of the terminology associated with Medicare Advantage. The transition to the use of the new terminology must be fully completed for all materials related to plan years starting on or after October 15, 2023. Until that time, any mentions of the Alternative Private Health Plan will still include references to the former Medicare Advantage program.

3. Penalties for Misuse of the Term 'Medicare'

The bill introduces a civil money penalty aimed at entities that incorrectly use the term "Medicare" in advertising for plans under the new program. Specifically:

• Any plan that advertises itself using the term "Medicare" in its title will incur a penalty of $100,000 for each instance that it does so after the bill becomes law.

This clause is meant to regulate and ensure appropriate usage of the term "Medicare" to maintain public trust and clarity around the Medicare program and its various components.

4. Governing Law References

The updates made through this bill will amend certain legal references and make it clear that any mention of the prior program names (like Medicare Advantage and MA) will be considered as part of the new Alternative Private Health Plan program going forward.

Relevant Companies

• UNH - UnitedHealth Group: As a major provider of Medicare Advantage plans, changes to the program could significantly impact their business model and offerings.
• ANTM - Anthem, Inc.: Similar to UnitedHealth, Anthem provides Medicare Advantage plans, and would need to adjust its marketing and product structure according to the new legislation.
• HUM - Humana Inc.: Being a strong player in the Medicare Advantage market, Humana would also be directly affected by the changes in program naming and advertising regulations.