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Medicare Advantage plans are similar to Medicare except that actual insurance companies operate the Advantage contracts. The insurers are then paid (per insured) by the federal government.
Obamacare is cutting approximately $200 billion from these types of plans and much of the reductions will take place in 2014. But recently, more cuts were announced and these will certainly impact many Seniors who may have to pay higher rates or possibly lose coverage.
The most recent changes involve lowering the reimbursement rates that insurers receive from the government.
The Affordable Care Act (commonly called Obamacare) has made a goal to gradually reduce the subsidies given by the federal government to Medicare Advantage plans to bring them in line with traditional Medicare. They froze the carrier subsidy levels in 2010 levels and in 2011 determined that Medicare Advantage plans cannot charge more for Original Medicare for some services. Whether the ultimate goal of this subsidy reduction and its ultimate impact remains to be seen, so far, the impact upon Medicare Advantage plan premiums have been minimal.
President Obama has said many times that he wants to end or reduce Medicare Advantage. He does not believe that for profit insurance companies should be competing with original Medicare with taxpayer money.
Part of the funding for the Affordable Care Act (aka: Obamacare) is coming from cuts to the funding for Medicare Part C (Medicare Advantage.)
It is expected that these cuts will increase premiums and reduce benefits for the people on Medicare Advantage and cause many of them to move back to original Medicare.
Obamacare reduces funding for Medicare by more than $700 billion between now and 2020. This means Medicare beneficiaries will pay higher premiums, higher copay's and deductibles and more out of pocket.
The reduced funding means fewer Medicare Advantage plans from fewer carriers. When you can find a plan expect it to cost more.
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Obamacare is cutting approximately $200 billion from these types of plans and much of the reductions will take place in 2014. But recently, more cuts were announced and these will certainly impact many Seniors who may have to pay higher rates or possibly lose coverage.
The most recent changes involve lowering the reimbursement rates that insurers receive from the government.
Part of the funding for the Affordable Care Act (aka: Obamacare) is coming from cuts to the funding for Medicare Part C (Medicare Advantage.)
It is expected that these cuts will increase premiums and reduce benefits for the people on Medicare Advantage and cause many of them to move back to original Medicare.
Only time will tell.
The reduced funding means fewer Medicare Advantage plans from fewer carriers. When you can find a plan expect it to cost more.