Friday, May 24, 2013

Medicare Advantage enrollees could take hit in 2014

In an article in the LifeHealthPro magazine, Karen Ignagni, president of America's Health Insurance Plans, stated that the potential 2.3% reduction in Medicare Advantage payments proposed by an arm of the Dep of Health and Human Services combined with PPACA's payment cuts will result in benefit reductions and premium increases. This will result in an increase average $50 to $90 per month for typical Medicare Advantage beneficiary next year, warned by AHIP. 
These proposed cuts will effect 14 million seniors, or roughly 28% of all Medicare beneficiaries. 
The new analysis prepared for AHIP states that the combined effect of the changes included in PPACA and the new payment cuts will result in an estimated 6.9% to 7.8% cut to Medicare Advantage plnas in 2014, causing the net out of pocket for seniors and those with disabilities to rise, accouding to AHIP.

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