Medicare Advantage plans (commonly termed Medicare part C) offer hospitalization (Part A) and medical care (Part B) available in original Medicare plans and additional perks like prescription part D coverage. In Ohio, 147 Medicare Advantage plans with various options are available to Cincinnati Elderly.
What’s under scrutiny in the Congress is insurance companies charging the Federal government 14% more for A & B Medicare under Advantage policies while offering comparable coverage to basic Medicare. In a virtual town hall meeting President Obama stated that he wanted to cease “giveaways that boost insurance company profits, but don’t make you any healthier.” Studies show that on average Medicare clients are as healthy as Advantage clients and live just as long.
The administration claims that insurance companies are able to lower their premiums for Medicare Advantage because they are being subsidized by taxpayers when they overcharge for Medicare A & B. If Congress cuts funding for Medicare Advantage under the proposed bill, the savings for the Federal government will add up to about $150 Billion over the next 10 years.
How will cuts affect seniors?
Medicare Advantage users stand to see the greatest impact from healthcare reform if the Advantage program is altered. Out of pocket expense for original Medicare and Medicare Advantage is close to a wash at present, but it’s likely that Advantage users will see a rise in premiums under the proposed plan. Those currently on the plan can take heart for now, there is gaining momentum in Congress to allow current Advantage users to maintain present coverage with no additional expense. Future Medicare Advantage applicants will likely see more out of pocket expense if the bill passes with the proposed modifications.
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