Biden’s Little-Publicized Medicare Privatization Scheme Is Starting to Raise Alarm Bells

The Biden administration hasn’t stopped trying to privatize Medicare. But a pushback is gaining steam.

President Biden Delivers Remarks On Plans To Lower Inflation

President Joe Biden speaks about inflation and the economy in the South Court Auditorium on the White House campus on May 10, 2022, in Washington, DC. (Drew Angerer / Getty Images)


There’s good news and bad news about the Joe Biden administration’s ongoing pursuit of the Direct Contracting Entity (DCE) program, also known as ACO REACH. The bad news is that the idea remains a threat to the health of seniors and an alarming Trojan horse that could lead to the privatization of Medicare. The good news is that resistance to it is beginning to gain some traction.

Late last month, the Seattle City Council unanimously passed a resolution “to stop privatizing the United States Medicare system.” The resolution, which warns that the introduction of the DCE pilot program “opened the door to the complete privatization of Medicare” and urges equity issues be resolved “within the traditional Medicare system,” was introduced by councilmember Teresa Mosqueda, who is far from being a radical. (While a progressive, Mosqueda has repeatedly butted heads with socialist councilmember Kshama Sawant, watering down the latter’s proposed “Amazon tax” — a sign of how potently unpopular the Medicare contracting program is.)

Three days earlier, the Arizona Medical Association (ArMA), the state’s four-thousand-member-strong American Medical Association (AMA) chapter, passed a similar resolution in its House of Delegates, calling for the program to be “terminated” and warning that seniors could find themselves thrown into a moneymaking system that “limits care to provide maximum profit.” The ArMA, which has previously voted down a resolution backing a single-payer health care system, also based its opposition on concern for doctors, pointing out they could end up enrolled in the program without choosing to be.

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