By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Medicare Advantage Cuts Not Only Delayed But Reversed
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Public Health > Medicare Advantage Cuts Not Only Delayed But Reversed
NewsPolicy & LawPublic Health

Medicare Advantage Cuts Not Only Delayed But Reversed

Linda Ringquist
Linda Ringquist
Share
5 Min Read
Medicare Advantage
SHARE

Medicare AdvantageSummary: CMS has reversed its original proposal to cutback Medicare Advantage plan reimbursement for 2015. The reversal is a result of aggressive lobbying from organizations such as the American Medical Association.

Contents
  • What is Medicare Advantage?
  • Medicare Advantage Cuts – Originally Proposed
  • Medicare Advantage Cuts – Opposition
  • Medicare Advantage Cuts – Consequences to Beneficiaries
  • Medicare Advantage Cuts – Officially Reversed for 2015
  • How Do the Medicare Advantage Proposed Cuts Affect Medicare plans?

Medicare AdvantageSummary: CMS has reversed its original proposal to cutback Medicare Advantage plan reimbursement for 2015. The reversal is a result of aggressive lobbying from organizations such as the American Medical Association.

What is Medicare Advantage?

According to www.medicare.gov, a Medicare Advantage plan is “a type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Part A and Part B benefits. Medicare Advantage Plans include Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. If you’re enrolled in a Medicare Advantage Plan, Medicare services are covered through the plan and aren’t paid for under Original Medicare. Most Medicare Advantage Plans offer prescription drug coverage.”

Medicare Advantage Cuts – Originally Proposed

As of February 2014, Medicare Advantage reimbursement was set to be slashed by 1.9%. The consequences of Medicare Advantage cuts are costly both from the insurer’s side as well as the beneficiary’s side. Cuts were originally proposed as part of the provisions of the Affordable Care Act, which set forth reductions in reimbursement totaling about $156 billion over approximately a decade. The impetus to reduce reimbursement stems from at least the perception that insurers are reimbursed at a higher rate for Medicare Advantage plans than for traditional fee-for-service plans.

More Read

What If The Supreme Court Strikes Down the Individual Mandate?
Guide on Critical Illness Insurance
Are Nitrates or Nitrites Bad? Not Really
Who is Susceptible to the Placebo Effect?
Osteoporosis Affects Your Oral Health

Medicare Advantage Cuts – Opposition

Organizations such as the American Medical Association have been extremely vocal, launching lobbying efforts to try to reverse the proposed cuts. Additionally, some of the larger insurers are undertstandably up in arms as these cuts directly affect their bottom lines. To put this in perspective, a company such as Humana, has approximately 2.5 million Medicare Advantage beneficiaries and about 3.3 million enrolled in Medicare Part D, accounting for more than 70% of their revenue. A 5% reduction would be extremely detrimental to this caliber of a company.

Medicare Advantage Cuts – Consequences to Beneficiaries

Cutbacks to Medicare Advantage plans would have substantial consequences to beneficiaries/enrollees as well. If cutbacks have an immediate impact on insurer’s bottom lines, how do you think they will try to recoup those losses? Costs would be passed on to beneficiaries in the form of premium increases and/or higher out of pocket expenses. These plans will become more costly and possibly even unaffordable for a vast number of enrollees. Additionally, the cost associated with these plans on the insurer side would cause many doctors to no longer accept patients with Medicare Advantage coverage. The adage “you can keep your doctor” will again come to the forefront. Doctors will continue to leave these networks, requiring beneficiaries to find new physicians or pay the out-of-network consequences.

Medicare Advantage Cuts – Officially Reversed for 2015

Evidently, the pushback from insurers as well as the aggressive lobbying which has taken place have caused CMS to rethink, at least for 2015, whether these cutbacks are indeed a good idea. As of April 2014, these cutbacks have actually been reversed and increases will take place. The original 1.9% reduction has turned into approximately a 4% increase.  Lobbyists, insurers, and beneficiaries can breathe a bit easier at least in the short run.

How Do the Medicare Advantage Proposed Cuts Affect Medicare plans?

These are basically separate programs. There still may be substantial cuts to traditional Medicare reimbursement. Review www.medicare.gov to find out the official information on all Medicare programs including Medicare Advantage.

TAGGED:medicare advantage
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Epidemiological Health Benefits
Personal and Epidemiological Health Benefits of Blood Pressure Management
Health
October 13, 2025
Traumatic Brain Injuries
Understanding Traumatic Brain Injuries: What Families Need to Know
Policy & Law
October 10, 2025
Remote Monitoring touchpoints
Remote Monitoring Touchpoints Patients Will Actually Follow
Technology
October 9, 2025
dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025

You Might also Like

Oral Cancer Marielaina Perrone DDS
Medical EducationWellness

What You Need To Know About Oral Cancer

February 24, 2013

The Big Payoff From Wellness and Prevention

May 11, 2012
Infectious Diseases
NewsUncategorized

5 Tips to Minimize Workplace Liability from Infectious Diseases

June 16, 2021

#Bio2011: After the Party is Over

July 1, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?