The New England Journal of Medicine reports that a number of Medicare Advantage (MA) plans are offering gym memberships, and that the seniors joining those plans self-report as being healthier than those who join Medicare plans without a gym membership.
Liberals are expressing their disappointment that the mostly for-profit health plans have found a subtle way to attract healthier seniors, trampling their utopian hope for a world where health insurers eagerly accept any applicant, regardless of age or health status.
They shouldn't be surprised. The Agency for Healthcare Research and Quality recently pointed out that 1 percent of patients account for 22 percent of health care spending, and 5 percent account for half of it. Talk about the 1 percent vs. the 99, but in this case the 1 percent cost a fortune rather than owning one.
The federal government gives MA plans a set amount of money to care for each senior who enrolls. If the senior spends more than his set allotment, the MA plan loses money; if less, the MA plan makes money. Since MA plans are required to take any senior who applies, they have no economic incentive to advertise and promote that they contract with the best organ transplant team in the country because they lose money on every transplant.
By contrast, seniors eager to go to the gym are likely to be healthier, on average, and cost less than the government allotment. Hence the health plan makes money off of them.
According to the NEJM, the number of Medicare plans offering gym memberships has grown from four in 2002 to 58. It's just companies acting rationally-and disappointing liberals who think altruism should drive all decisions.