Medicare Advantage premiums to dip in 2011

[bushisanidiot]

More good news for the economy that the MSM won't report on.. just a guess!

http://news.yahoo.com/s/nm/20100921/hl_nm/us_insurers_medicare

" By Susan Heavey Susan Heavey – 34 mins ago

WASHINGTON (Reuters) – Elderly Americans enrolled in private Medicare health insurance plans will see their premiums fall slightly in 2011 while gaining more benefits from recently passed healthcare reforms, U.S. health officials said on Tuesday.

The plans, called Medicare Advantage, are offered by health insurance companies as an alternative to traditional, government fee-for-service Medicare. Rates are expected to be 1 percent lower next year compared to 2010, the Centers for Medicare and Medicaid Services (CMS) said.

Enrollment in the plans is also expected to grow 5 percent. More than 11 million seniors are already enrolled in the plans, which have come under fire from critics who say insurers receive lucrative subsidies to provide the plans even though they can offer additional benefits.

Jonathan Blum, director of CMS' Center for Medicare, said the lower costs and projected expansion show companies are still interested in offering such plans despite new consumer protections under the healthcare law and recent payment caps to insurers.

"This is still a very attractive marketplace for Medicare Advantage plans," he told reporters.

Companies such as Humana Inc and UnitedHealth Group Inc are some of the biggest providers of such private plans.

Shares of health insurers were up 1.5 percent on the Morgan Stanley Healthcare Payor Index and the S&P Managed Health Care Index in late morning trade compared to a slight decline in the market overall.

The news comes as the healthcare reform law, passed in March, hits its six month anniversary this week, triggering a host of changes for insurers overall, such as ending lifetime coverage caps and banning policy cancellations after an enrollee gets sick.

Under the law, Medicare Advantage consumers will see their out-of-pocket expenses limited and a reduction in how much they have to share costs when it comes to kidney dialysis, chemotherapy and other expensive care, Blum said.

Starting in January, enrollees can also see greater discounts for prescription drugs sold either as a separate Part D plan or as part of bundled Medicare Advantage coverage.

The healthcare law offers a 50 percent discount from drugmakers in the so called 'donut hole' when drug benefits temporarily stop. Officials also said more insurers were expected to offer plans that covered the gap.

Overall, about 5 percent of beneficiaries will have to choose a new provider because their Medicare Advantage plan has shut down, officials said.

CMS said some companies chose to abandon the Medicare business next year, mostly those offering private fee-for-service plans that wanted to increase beneficiaries' costs while increasing profit margins.

About 300 out of 2,100 plans were not allowed to offer plans unless companies agreed to change them, officials said. Most agreed to make changes, but others did not."

[DURHAM D]

1. Sorry to bother but could someone explain to me -

the basic difference between a Medicare private supplemental plan and Medicare Advantage.

My brother worked for a large corporation and he receives a pension and his company enrolled him in Medicare Advantage and Part D. His pension is reduced by about $300 each month to pay for B and D and Advantage. They do reimburse him quarterly for his Part B deducted from his SS check (about $300 a quarter). He has to meet a $2500 deductible each year plus he has co-pays for medicine, doctor visits, hospital visits, etc. He does have dental and eye coverage in the Advantage plan. He has several health issues.

My sister does not receive a pension and pays $96 a month for Medicare (from SS) and $121 a month for a private supplemental for the 20% gap in A & B. She also has Part D for $45 a month. She meets no deductible, has no co-pays on A & B, small co-pay on scripts and I don't believe she has dental or eye coverage. She has no health issues.

Which do you think is the better plan?