On Wednesday the Department of Health and Human Services (HHS) announced that over the past year the costs of Medicare Advantage premiums have declined by 7% while enrollment in programs has increased by 10%.
In a statement HHS Secretary Kathleen Sebelius remarked, “The Medicare Advantage program is stronger than ever. Premiums are down on average, enrollment is up, and thanks to the Affordable Care Act we have unprecedented new tools to ensure that seniors and people with disabilities are getting the best value out of their coverage.”
Overall, since the Affordable Care Act was signed into law in March 2010 the cost of Medicare Advantage premiums have dropped by 16% and enrollment has increased by 17%.
This result is in direct opposition to what Republicans incorrectly warned would occur under the Affordable Care Act. Nancy-Ann DeParle, Assistant to the President and Deputy Chief of Staff for Policy, said Wednesday in her blog on the White House website that Republicans claimed that due to the Affordable Care Act, “‘Every one of them (in Medicare Advantage) will see their benefits go down,’ ‘provisions in there are going to allow them to kill Medicare Advantage,’ ‘if this passes, it is the end of Medicare Advantage as we know it.’”
To the contrary, via the Affordable Care Act Medicare Advantage program premiums are less expensive and Medicare Advantage enrollment is on the rise with better plans being offered by private insurers. As an incentive, this year private insurers will receive bonus payments based upon high quality service to Medicare advantage customers.
“Not only are average premiums lower, but plans are better,” stated Marilyn Tavenner, the acting administrator for the Centers for Medicare and Medicaid Services. Continuing, she said, “The Affordable Care Act has strengthened Medicare Advantage by motivating plans to improve the quality of their coverage.”
Medicare Advantage provides the standard basic coverage of Medicare, but because these plans are run by private insurance companies who are allowed to alter the structure of the plans in various ways, they also may offer extra benefits depending upon the insurance company, including vision, dental, hearing, and wellness programs. 99.7% of Medicare recipients have access to Medicare Advantage programs.
In addition to strengthening Medicare, the Affordable Care Act has helped millions of Americans gain health insurance who previously did not have coverage. The law also has strengthened consumer protections and by 2014 it will help most Americans who previously could not afford medical insurance to finally have access.
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