Medicare Advantage Cuts Frustrate Seniors

Insurers have pulled an alarm signal, and are cautioning seniors that if the Government cuts the subsidies for their dental treatments, hearing aid devices or even gym memberships that they receive through Medicare Advantage, the premiums will rise significantly.

However, tens of millions of Medicare dollars are actually spent towards massive and exaggerate marketing strategies to attract even more costumers towards the private Advantage plans. This money is also being redirected towards exaggeratedly high salaries or paying for executive retreats in places like Hawaii or Cancun.

If the Democrats are successful with their health care plan, the government subsidized advantage plans offered by Medicare for seniors could get seriously in danger.

Medicare Advantage private plans would be allotted a much lower budget, if the bills pass. It is important to note that traditional Medicare plans cost the Government 14% less than the private Medicare Advantage plans.

Although there are currently many associations and advocacy groups (such as the AARP for instance) that actually support these cuts in the Advantage plans, the downside of the problem is that the seniors will have to pay more expensive premiums and will receive fewer benefits with their plans.

According to a report of the Government Accountability Office issued last year, private plans are actually more expensive than traditional Medicare. Major differences in prices have been recorded in different plans, and the report states that home health service covered by a private plan might cost even up to 84% more than the same service offered by a traditional Medicare plan.

Many seniors, who have gone through severe illnesses, admit that even if Medicare covers for a service, it will turn them down if they need a very costly treatment (such as covering for rehabilitation after Alzheimer’s). Many also admit that Medicare offers very advantageous and cheap plans only for smaller interventions, such as covering for hearing aids or vision exams. But what seniors truly need is being offered coverage for the more serious treatments as well.

According to current statistics one in four seniors does adhere to a private Medicare plan, because of the highly advertised benefits for seemingly advantageous prices. But now, with so many cuts on the line, seniors are going to lose many important benefits. As an effort to keep these plans on the floating line, several provisions have been added to the Senate legislation. These provisions include offering exceptions in some of the cases (the grandfather clause) or provide emergency funds that will help avoiding sudden disruptions.

With all these, more and more seniors are being raged with the fact that the AARP actually supports the health care bills introduced by the Democrats. The private plans from Medicare exist since the early 70’s. Ever since they have gone through many cuts, but this time it looks like the Government is held accountable for the more expensive premiums in the entire system and the for the fact that there are about 18% fewer plans operating (in 2010).