| Medicare Advantage Plans: Proposed Changes |
 |
 |
 |
| Written by Richard Cantu |
| Wednesday, 21 April 2010 21:18 |
|
Medicare Supplement Insurance is not the only Medicare-related coverage that is going through changes within the next few months due to the new health care reforms proposed by President Obama. Medicare Part C Plans, which are commonly known as Medicare Advantage plans, are also experiencing change.
Medicare Supplement Insurance is not the only Medicare-related coverage that is going through changes within the next few months due to the new health care reforms proposed by President Obama. Medicare Part C Plans, which are commonly known as Medicare Advantage plans, are also experiencing change. Here's a bit of background information on Medicare Advantage Plans: Medicare Advantage Plans are Health Maintenance Organization (HMOs), Preferred Provider Organizations (PPO), Private Fee-for-Service Plans, or Medicare Special Needs Plans . To enroll in a Medicare Advantage Plan, you must have Medicare Parts A and Part B, and you may have to pay a monthly premium to your Medicare Advantage Plan for the extra benefits that they offer. Advantage plans are private. You should not be simultaneously enrolled in a Medicare Advantage plan and a Medigap plan as they counter one another. Current reports state that Medicare Advantage Plan payments to private health insurers will be limited to 2010 rates for the entirety of 2011. The proposed health care laws stipulate cuts amounting to $130 billion over the next ten years to these plans to prevent government overcompensation to insurance providers. As next year's payments will not be able to match rising health care costs, what could occur is that insurance companies will offset the loss of payment increases by the increasing premiums that their customers pay. Medicare Advantage Plans and prescription drug plans also will need to have significant differences between their products due to CMS regulation which requires the elimination of duplicate drug and health plans. These differences range from plan types, client out-of-pocket costs, premiums, and formulary offerings. Starting in 2014, Medicare Advantage Plans will have to spend 85% of health insurance premiums collected by insurers on providing health care to their customers as an additional limiting factor to overcompensation of insurance executives. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about Medicare supplements. Stop by Richard Cantu's site where you can find out all about Medigap and what it can do for you. |