You may have heard a few depressing predictions that the Medicare Advantage Plans from private insurers would soon either reduce coverage benefits, or raise premiums. So far, nothing could be farther from the truth. The Obama administration has said that nearly 12 million of the beneficiaries enrolled in Medicare Advantage Plans will see their monthly premiums drop by an average of four percent next year, but the benefits will stay the same.
About one quarter of all Medicare beneficiaries are now enrolled in Advantage Plans according to the Deputy Administrator of the Centers for Medicare and Medicaid Services (CMS), Jonathan Blum. He expects enrollment to increase by 10 percent next year because these plans are also cutting the out-of-pocket expense that beneficiaries have. The plans will lower both co-payments and deductibles.
To give you an idea of what price range we're talking about, the average Medicare Advantage monthly premium is around $39 this year, according to the Kaiser Family Foundation. The economic downturn, recession, or whatever you want to call it has actually driven the cost of coverage downward.
Advantage plan members have used minimal health care services during the downturn, and the insurers have had fewer claims to cover. That means they didn't have to spend as much of the premiums they took in as they expected.
There's also another incentive for insurers to keep the cost of their Medicare Advantage Plans low. These plans typically offer coverage for prescription drugs, which puts them in competition with Medicare Prescription Drug plans that are also known as Part D. The Obama administration just announced that the cost for Part D Prescription plans would also be decreasing slightly.
What Fueled Predictions That Medicare Advantage Plans Would Cost More?
The government pays more per capita for private plan beneficiaries than it does for those enrolled in traditional Medicare. Federal payments to Medicare Advantage Plans were actually frozen this year, and payment cuts are expected. In 2012, payments will be dropping by less than one percent to many, but not all, MA plans.
Many claimed that premiums would have to go up to compensate for the reduction in federal funding. They didn't figure in other factors, like the insurers spending less for claims or five-star plans getting increased federal funding.
Health care reform is providing billions of dollars in the form of quality bonuses for plans that earn four to five stars on a five-star grading system. Almost 90 percent of people enrolled in an Advantage plan could benefit if their plan earns a bonus. Before you get too excited, the plans did not score well this year, but it's hoped that more will make the cut in 2012.
If you haven't looked at the Advantage plans available in your area, you have until December 7 to explore those options. After that, you won't be able to sign up for another year with just two exceptions. If you're new to Medicare you can enroll in an MA plan in place of traditional Medicare. And second, any MA Plans that earn five-star ratings are allowed to sign people up throughout the year.
HIPAA Certificate Of Creditable Coverage Benefits Of Health Insurance Quotes Online HIPAA Safety Rule - 3 Safeguards to Be Followed Why You Need Medical Insurance
0 comments:
Post a Comment