Clash Over Medicare Advantage

And so it begins, the insurance companies who would like to offer Medicare Advantage plans in 2011, were required to submit their bids to offer plans to Centers for Medicare and Medicaid Services (CMS) this week.  With the Health Care Reform passed, the cuts to the Medicare Advantage funding will start taking place in 2012, but the funding for 2011 will be maintained at current levels (no increase from 2010).With funding staying at current levels if medical inflation is factored in that means there will be less money available for these plans to operate on in 2011, which could lead to increased premiums, higher cost sharing (co-pays & deductibles) or both.  I guess only time will tell, but the one thing for sure is that Medicare beneficiaries on a Medicare Advantage plan will continue to feel the effects of higher costs.

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