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Shalala Warns of Higher Medicare Fees in GOP Plan

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<i> From Associated Press</i>

Seniors could get stuck with sharply higher premiums in the Medicare plans that Republicans want to create, Health and Human Services Secretary Donna Shalala said Tuesday.

She told an unofficial hearing by Democrats from the House Commerce Committee that the GOP plan would scrap current limits on how much hospitals and doctors can charge the elderly.

“Doctors and hospitals in MedicarePlus plans could charge seniors any amount they want,” Shalala said.

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A spokesman for the Republican-controlled full committee, Mike Collins, said Shalala “is engaging in another scare tactic.”

Howard Cohen, the chief GOP health aide for the commerce panel, said the legislation would retain restrictions on doctors’ bills in fee-for-service Medicare.

The new MedicarePlus plans could offer expanded benefits and charge the elderly higher premiums, Cohen said, but “nobody’s forcing them to join this plan. They can always stay in fee-for-service.”

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