Tags: medicare, obamacare, healthcare

The Centers for Medicare and Medicaid Services (CMS) recently announced proposed rules that would cut payments to Medicare Advantage (MA) Plans beginning in 2014. Assuming that the announced reductions go into effect, these will increase the already-scheduled cuts legislated in the Affordable Care Act (ACA) and American Taxpayer Relief Act (ATRA) and worsen their expected impact on MA plans, benefits, and enrollment. Accounting for all currently projected cuts, an updated analysis indicates a national average MA enrollment drop of 11 percent, and an average benefit value loss of $2,235 per beneficiary.

Here is the link to the full article.

http://americanactionforum.org/topic/medicare-advantage-cuts-affordable-care-act-march-2013-update

Observations

The Federal Government is nudging everyone to use the Exchanges instead of private healthcare providers.  This is especially true for Medicare recipients who choose supplemental care policies with private insurers.  Up to now, certain healthcare insurers
received grants for being efficient and high-quality providers.  Now that goes away.  The result is an increase in premiums for these plans nicknamed “Medicare Advantage.”
The healthcare providers that receive compensation for their services to Medicare patients must accept a fee schedule for medical services that are based upon a flat rate schedule, even if the patient is not eligible for the particular treatment regimen.  That is why a growing number of medical care providers no longer accept Medicare patients.  Some doctors and clinics now offer a subscription service called “Concierge Service” for a fixed annual fee.

Bottom line, seniors will discover that their Medicare Advantage plans will cost a lot more in 2014 and beyond.  If they want face time with a physician, they will shell out another $1200 or so each year for the privilege.  Why?  Because the reimbursement for services rendered is below their cost to provide the service and pay for operating expenses.

Tags: medicare, obamacare, healthcare