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Medicare Blog | Medicare News | Medicare Information

The narrowing of Medicare Advantage plans

Posted by Guadalupe Cantu on Fri, Sep 27, 2013 @ 10:00 AM

Medicare Supplements It’s no big secret that the government was looking for a way to pave the way for an entirely new health reform. A cost control measure, which would save over $132 billion within a 10 year span. The government found it through the budget cuts changes they made to Medicare Advantage.

In 2014, the Medicare Advantage plans available will decrease from to 2,664 plans in 2013 to 2,522,, a difference 5.3 percent, according to Avalere Health analyst.

Further driving the decline of Medicare Advantage plans is the Affordable Care Act payment cuts. Beginning 2014, Medicare Advantage plans are required by law, to lower cost and use 85 percent of their revenue on medical care and quality improvement efforts. Any Medicare Advantage participants who fail to meet the requirements will be prohibited from accepting new enrollees, and their plans will be terminated after five years of non compliance. Not all news is bad for Medicare Advantage plans. Quality bonus programs have been developed to reward plans that are higher in quality and more efficient than their counterparts, reports Centers for Medicare and Medicaid.

According to Peter Kongstvedt, MD, a noted insurance industry consultant and a member of MANAGED CARE’s editorial advisory board, the Medicare Advantage HMOs will do well because their rates are often below the fee-for-service equivalents and they have a track record of doing well in the past. He also believes Medicare Advantage PPOs will fare well.


Please give us your feedback!
What does this all mean to the seniors? Under the Affordable Care Act, everyone has the right to health insurance. Do you believe “the law” will help decrease rates?

 

Source: LifeHealthPro & Managed Care Magazine

Additional Updates:
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      October 2013 Med Supp rate release for CA, DE, GA, IL, KS, MS, NC, ND, OH, PA, TN, WV and Med SELECT MS, NC, OH, PA, TN. Learn More

      October Med Supp Outlines for CA, DE, GA, IL, KS, MS, NC, ND, OH, PA, TN, WI, WV. Learn More

      October Med SELECT Outlines for MS, NC, OH, PA, TN. Learn More

      September Med Supp Rates for ID, IN, WY. Learn More

    • 2014 Medicare Advantage and Part D Certifications are now available! Learn More

Tags: Medicare Advantage, Medicare Supplement, Medicare Advantage News, Medicare Part D, Affordable Care Act, Affordable Care, HMO

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