Press Release
GAO Confirms That Medicare Advantage Yields Savings for Seniors
WASHINGTON, Feb. 28, 2008 — Medicare Advantage plans continue to provide high-value health care coverage to millions of seniors according to estimates and projections released by the U.S. Government Accountability Office (GAO).
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GAO demonstrates that Medicare Advantage plans are significantly reducing out-of-pocket costs for beneficiaries. Enrollees in Medicare Advantage plans are spending less than half, out-of-pocket, for Medicare benefits according to results cited by the report.
The GAO report follows a recent Kaiser Family Foundation study which found that Medicare Advantage plans can significantly reduce cost-sharing for Medicare beneficiaries - up to $4,000 annually for beneficiaries with the highest health care needs.
"This is the latest confirmation that most Medicare Advantage enrollees are saving on health care costs," said Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP). "According to the government, a Medicare Advantage benefits package saves enrollees on average approximately $1,100 per year."
Unfortunately, the report is already being used to suggest that Medicare Advantage plans are not providing comprehensive benefits. By focusing on cost-sharing for individual services - without considering the entire episode of care - the report underestimates the value that Medicare Advantage plans are providing. These comparisons do not account for the entire costs that a beneficiary is likely to incur during a spell of illness.
America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans
CONTACT: Mohit Ghose of America's Health Insurance Plans, +1-202-778-8494
Web Site: http://www.ahip.org/
