Coalition for Medicare Choices: Working Together to Save Medicare Advantage

Proposed Medicare Advantage Payment Changes

Will Hurt Seniors

For Immediate Release
February 19, 2013

Robert Zirkelbach

Ignagni: "Washington cannot tax and cut Medicare Advantage this much and not expect seniors to be harmed."

Washington, DC - America's Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni released the following statement today in response to proposed Medicare Advantage payment changes, the 45-day notice, released by CMS last Friday:

"The proposed changes to Medicare Advantage payments are a crushing blow to the 14 million seniors and people with disabilities who count on this critically important part of Medicare. The combined effect of the ACA cuts and new proposed payment changes will likely result in seniors facing higher out-of-pocket costs, reduced benefits, and fewer health care choices.

"These cuts will compound the $200 billion in Medicare Advantage cuts and the new health insurance tax included in the health care reform law. The Congressional Budget Office projects that the reform law's payment cuts alone will result in three million fewer people enrolled in Medicare Advantage. Actuaries at Oliver Wyman estimate that the health insurance tax will result in seniors facing $220 in higher out-of-pocket costs and reduced benefits next year and $3,500 in additional costs over the next ten years. The cumulative impact of these changes will reduce Medicare Advantage payments next year by more than eight percent, or approximately $11 billion, destabilizing the program and putting at risk the health care coverage upon which millions of beneficiaries rely.

"Washington cannot tax and cut Medicare Advantage this much and not expect seniors to be harmed. These changes will disrupt coverage for Medicare Advantage beneficiaries at a time when evidence clearly demonstrates that Medicare Advantage provides higher-quality care than the fee-for-service part of Medicare."


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Facts About Medicare Advantage
  • Medicare Advantage is a valuable source of coverage to low-income and minority Medicare beneficiaries. Learn more.
  • More than 15 million American seniors and individuals with disabilities depend on their Medicare Advantage plans.
  • Seniors and individuals with disabilities in Medicare Advantage are receiving better quality care. Learn more.
  • Medicare Advantage beneficiaries make up more than 29% of total Medicare enrollment and as much as 46% in some states. See state facts.
  • Medicare Advantage can significantly reduce seniors' and individuals with disabilities out-of-pocket costs.
  • Often Medicare Advantage plans include benefits not covered under regular Medicare, such as dental care, preventive care and vision care.

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