Medicare Advantage Cuts: Higher Costs and Reduced Benefits

COALITION Medicare Advantage Cuts THE FOR MED Higher Costs and Reduced Benefits CHOICES MEDICARE Seniors and people with disabilities enrolled in Medicare Advantage plans will face higher premiums, reduced benefits, and loss of coverage options if new Medicare Advantage cuts proposed by the Centers for Medicare & Medicaid Services (CMS) take effect next year. CMS recently proposed a 2.3 percent reduction in Medicare Advantage payments for 2014 at a time when medical costs are projected to increase by three percent. The new proposed payment cuts are in addition to the Medicare Advantage cuts and the new health insurance tax included in the Affordable Care Act (ACA). New Cuts Proposed by CMS CMS recently proposed a 2.3% reduction in MA payments for 2014 at a time when medical costs are projected to increase by 3%. Only 4% of the ACA's $200 billion in MA cuts have gone into effect. The Congressional Budget Office projects that these cuts will result in three million fewer people enrolled in the program. ACA's Medicare Advantage Cuts ACA's Health Insurance Tax The ACA's new health insurance tax starts in 2014. Seniors will face $220 in higher costs and reduced benefits next year and $3,500 in additional costs over the next ten years. Impact on Seniors: $50-$90 average per month premium increase and/or benefit reduction