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  • If You Like Your Medicare Advantage Plan, You Probably Cannot Keep It

    Earlier this year, Richard Foster, the Chief Actuary for the Centers for Medicare and Medicaid Services (CMS), issued a report projecting that about half of all seniors and disabled Americans enrolled in Medicare Advantage plans will be pushed out of that program due to the new health care reform law, the Patient Protection and Affordable Care Act (PPACA).

    In response to a request from Sen. Charles Grassley (R–IA) and three other Republican Senators, Foster recently confirmed that in addition to losing access to the health plan of their choice, those who are able to remain in Medicare Advantage plans will face substantially higher out-of-pocket costs as a result of the cuts to Medicare Advantage in the new law.

    The Senators requested an analysis of the relative impact of the changes on urban compared to rural areas. The letter from the Actuary declined to answer that question, saying his office had not made such a calculation.

    However, we have done these calculations. Jim Capretta, Jason Richwine and I have calculated the impact of the Medicare Advantage changes—both in terms of lost enrollment, and lost dollars—for seniors and the disabled not only nationally, but regionally as well.

    Taking into account those who remain in the less-generous Medicare Advantage program and those pushed out of it completely, our report found substantial regional variations—benefit losses range from a low of $2,780 in Montana to a high of $5,092 in Louisiana. The percentage of beneficiaries pushed out of the program ranges from 38 percent in Montana to a 67 percent in Washington, D.C., and 84 percent in Puerto Rico. We have calculated separate results for each state, for each county, and for each congressional district.

    The bottom line is clear: As a direct result of the Medicare cuts used to pay for a massive Medicaid expansion and subsidy scheme under the new law, senior citizens and disabled Americans will pay more but receive less care, and despite repeated promises that “if you like your health plan, you can keep it,” half of those who like the Medicare Advantage plan they’ve chosen will not be able to keep their plan. Even those who are able to keep their plan will find that it’s not the same plan any more—it will have higher out-of-pocket costs and cover fewer services.

    Posted in Obamacare [slideshow_deploy]

    7 Responses to If You Like Your Medicare Advantage Plan, You Probably Cannot Keep It

    1. Pingback: Must Know Headlines 10.31.2010 — ExposeTheMedia.com

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    3. Pops Carter, Moses L says:

      I found out about this last month, when Sterling first said my Advantage Plan cost would increase 150%, then informed me that it would be cancelled December 31st, 2010.

      I'm now looking for an affordable plan, but it appears I will have to accept lower coverage for the same cost, if not more.

    4. Pingback: Changes for Medicare – Detroit Free Press | Medicare Resource Center

    5. Barbara Bieber, Appl says:

      I have Humana Medicare Advantage and just finished reading part of the large booklet received recently in the mail. You are correct. The premiums are going up and some of the services previously covered, are not now covered. I just knew when Mr. Obama stood there and said,"nothing will change" he was not telling the truth.

    6. marian lampl, cincin says:

      I find that my Anthem Senior plan costs no more but it has dropped all reimbursement for vision and podiatry services. I have not yet checked the formularies to see if my medications have been eliminated or changed. The plan indicates that this may be the case.

    7. Joe, PA says:

      One commonly confused detail regarding the Medicare annual enrollment period is there is no enrollment period for Medicare Supplemental Insurance. You may change a Medicare supplement policy at any time. This year many of those over 65 are choosing Medicare Supplement plans over Medicare Advantage. Some reasons include the freedom from networks in Medicare Supplement, the better benefits, and the new Medicare Supplement plans M & N with premiums more in line with many Medicare Advantage plans. For expert advice you can consult one of the many experts at the Senior Advisors Group.

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