Weekly Checkup
February 26, 2015
More Cuts to Medicare Advantage
Medicare Advantage (MA) is a popular health insurance program for seniors. MA has been successful in offering more plan choices, good benefits, and quality health care. However, despite MA’s successes, the Affordable Care Act (ACA) cut the program by roughly $200 billion over 10 years.[1] In 2012, the administration began implementing the ACA’s cuts and by 2013, MA beneficiaries began to feel the effects.[2] As demonstrated in the chart below, federal payments to MA plans have faced unprecedented reductions, resulting in lower benefits for American seniors.[3],[4]
[1] https://www.cbo.gov/sites/default/files/hr4872_0.pdf
[2] http://americanactionforum.org/research/medicare-advantage-cuts-in-the-affordable-care-act-april-2014-update
[3] Geise, Glenn; Carlson, Chris. “Proposed Changes to 2014 Medicare Advantage Payment Methodology and the Effect on Medicare Advantage Organizations and Beneficiaries.” Oliver Wyman. February 26, 2013
[4] Geise, Glenn; Meyer, Keven. “2016 Advance Notice: Changes to Medicare Advantage Payment Methodology and the Potential Effect on Medicare Advantage Organizations and Beneficiaries.” Oliver Wyman. February 25, 2015
