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Posted by on Sep 10, 2013 in Uncategorized | 0 comments

Medicare Advantage Faces Changes

Medicare Advantage plans are privately administered plans that contract with Medicare to provide recipient benefits. Medicare pays a fixed amount each month to the companies offering Medicare Advantage Plans.

According to the Kaiser Family Foundation, Medicare Advantage enrollment climbed from 11.1 million in 2010 to more than 14 million beneficiaries in 2013, an all-time high, despite predictions that the ACA would lead to a decline in enrollment.


The Affordable Care Act reduced federal payments to Medicare Advantage plans with the goal of lowering costs closer to the level of traditional Medicare. Payment changes will increase pressure on plans to be more efficient. We may see plans choose to leave the market as payment reductions are phased in over the coming years, forcing beneficiaries back into the traditional Medicare system.

According to an article by The Tennessean, Humana CEO Bruce Broussard says federal health reform ‘not working’ yet, Louisville, Kentucky based Humana, which offers Medicare Advantage plans, is one company under pressure to reduce costs. According to Humana CEO Bruce Broussard, “It’s our obligation as an industry to reduce the cost structure of this industry.”

If you are interested in reading more about how the PPACA will affect Medicare Advantage, check out this list:

Making Sense of the Change in How Medicare Advantage Plans Are Paid

Can Medicare Advantage survive PPACA?

Medicare HMO Withdrawals: What Happens to Beneficiaries?

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