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In January, enrollment begins for private Medicare plans.
The private Medicare plans negotiate prices with drug makers and have secured substantial discounts.
The White House said its proposal would improve the accuracy of payments to private Medicare plans.
Its new Medicare plans both provide care and pay for it.
"Their Medicare plans run about 10percentt more than traditional fee-for-service Medicare.
But, he insists, "we should also eliminate billions of dollars in overpayments to private Medicare plans".
"Before 2003, rural Medicare beneficiaries rarely had private Medicare plans to choose from.
And Aetna's combination with Humana threatened to further consolidate the market for private Medicare plans.
The Bush proposal would prohibit door-to-door marketing of private Medicare plans.
But senior citizens often encounter difficulties upon enrolling in private Medicare plans.
Mr Obama's reforms cut $716 billion from Medicare, mostly through lower payments to hospitals and private Medicare plans.
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CEO of Professional Science Editing for Scientists @ prosciediting.com