The recently launched Medicare REACH program allows third-party middlemen to keep up to 40% of the dollars dedicated to patients in their care. The program was started as a pilot program under the Trump administration, and has been continued under the Biden administration. It operates as an innovation program under the Center for Medicare and Medicaid Innovation (CMMI), so it does not require Congressional approval or regulatory oversight. Corporations and hedge fund managers without prior health care experience can set up or purchase an existing medical practice. For example, Amazon is in the process of purchasing One Medical for $3.9 billion under the REACH program.

The League of Women Voters’ Health Care Position opposes privatization of Medicare. We encourage you to learn more about the REACH program, how it will affect seniors and disabled people who are now covered by traditional Medicare, and how to take action. A goal of the program is complete privatization of Medicare by 2030.

Co-Chairs, Health Care Issues Team