According to data from the Centers for Medicare and Medicaid Services (CMS), 42 percent of all Medicare beneficiaries (almost 27 million people) are currently enrolled in a Medicare Advantage (MA) Plan.
At Next Step Insurance we offer Medicare Supplement plans and Advantage Plans from several different insurers. Both options have pros and cons. Over time, we have seen increased interest in Advantage Plans, partly because they often offer benefits beyond traditional Medicare, such as some (limited) dental, vision and hearing coverage, gym memberships, etc.
Additionally, the MA market has become increasingly competitive in recent years, with more insurance companies offering these plans. This has led to more choices and better pricing for consumers. Overall, the trend suggests that Advantage Plans will continue to be a popular option in the coming years.
The insurance industry and some members of Congress are using the debt ceiling debate to stop changes in Medicare Advantage Plan funding. While Advantage Plans are increasingly popular, they have faced criticism about their costs to the government.
So far this year, CMS has released two rules aimed at reducing federal overpayments to Advantage plans while increasing oversight—moves long recommended by both economists and non-partisan government watchdog groups.
Better Medicare Alliance, which represents two of the largest insurance companies in the nation, has spent $10.5 million so far in 2023 on ads saying the program is being cut. We think these ads are misleading. Increased enrollment in MA plans has meant increased profits for insurance companies. CMS proposed a 1 percent increase for 2024—a smaller increase than proposed in past years, but not a cut. Another action would enhance audits and make it easier for the government to recoup overpayments to insurance companies.
Health and Human Services Secretary Xavier Becerra said, “Any claim that Medicare is being cut is categorically false. Leave it to deep-pocketed insurance companies…to characterize this year’s increase in Medicare Advantage payments as a cut. Disinformation…hurts Medicare beneficiaries and the Medicare Trust Fund.”
Ignore the ads meant to alarm you. There is no indication that Advantage Plans are going away.
For more information email info@nextstep-insurance.com or call/text 920-268-1600 today.
Next Step Insurance is part of the Sheboygan Sun’s Preferred Business Sponsor program.
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Email questions to tjones@orourkemediagroup.com.