This week America's Health Insurance Plans (AHIP) warned that the potential 2.3 percent reduction in Medicare Advantage payments proposed by the Department of Health and Human Services (HHS) combined with PPACA's payment cuts will result in benefit reductions and premium increases of $50 to $90 on average. These cuts would affect 14 million seniors which is roughly 28 percent of all Medicare beneficiaries. An analysis prepared for AHIP states that the effect of the changes from both PPACA and the new payment cuts will result in an estimated 6.9 to 7.8 percent cut to Medicare Advantage plans in 2014.
How do you feel about these rate increases to Medicare Advantage? How do you think it will affect your business? Do you think this is positive for your Medicare Supplement business?