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Medicare Advantage Plans on the Way Out

Editor’s note: Despite claims that Congressional actions won’t impact the health plan you have now and you will be able to maintain what you have, Medicare Advantage Plans are on the way out due to Acts of Congress.

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More than 660,000 seniors next year will lose their private Medicare plans

 

The Wall Street Journal reports that more than 660,000 seniors next year will lose the private Medicare plans they now have because some insurers are dropping coverage in response to tougher federal requirements. The article cites:

  • Most of those beneficiaries are enrolled in a type of Medicare Advantage plan called Private Fee for Service, where enrollment has surged from about 820,000 three years ago to more than 2.44 million today.

  • Congress, alarmed by the high cost of PFFS plans, voted in 2008 to require the plans to establish networks of providers beginning in 2011.

  • Companies such as Humana Inc., which has established networks that can cover at least 80% of PFFS enrollees, are doing just that.

  • Plans with a total enrollment of 667,000 people are scheduled to be canceled next year.

  • WellCare Health Plans Inc. is canceling its PFFS plans for about 110,000 enrollees.

  • UnitedHealth Group Inc. is no longer offering PFFS plans to some 2% of its members in markets where no other UnitedHealth Medicare Advantage plan is available.

Source: The Wall Street Journal, October 1, 2009 http://online.wsj.com/article/SB125443003194657369.html

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October 5, 2009 - Posted by | Federal Government, healthcare | , ,

1 Comment »

  1. I address thus issue on my blog as well http://www.quinnscommentry.com. where I point out that the supposed overpayment to these plans us a result of actions by Congress and what started as a good idea to offer HMOs as an option was expanded by Congress into a variety of plans without the ability to control costs.

    Comment by rdquinn | October 6, 2009 | Reply


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