Medicare MAPD: Loved By The Elderly, But Will It Last? 2

Medicare MAPD: Loved By The Elderly, But Will It Last? 2

The change has eliminated the problem of having thousands of plan options to make.

Cost change, additional charges not covered by Medicare have increased the price of Medigap plans. Over time, Medicare reduced the amount it reimbursed to providers, doctors, hospitals, etc. This meant that Medigap’s policy had to pay for these new charges, which resulted in high premiums to cover these variable expenses. The effect on older people with age was that their policies became more exorbitant. Most retirees with fixed income have felt economic pressure hence, reduced their coverage. The irony was that when it was the right time when they would probably need insurance, they didn’t have it.

As a result of the Balanced Budget Act of 1997, the first alternative to a complementary Medicare plan was available. Known as Medicare + plans, they offered seniors the option of receiving benefits from a private company. With the Medicare Prescription, Improvement and Modernization Medication Act of 2003, the plans became known as Medicare Advantage.

Medicare Advantage plans are not original Medicare or Medicare supplements. Private companies hire the government to offer benefits at least equal to or greater than the original Medicare. They are usually low cost or premium and are located at The values ‚Äč‚Äčthat an older person pays are co-payments at the time of service. An example would be a $20 fee for consulting a doctor or a $150 fee for a day of hospitalization. Copays vary from company to company. Plans generally have a limit on the amount paid annually. These can vary from $2500 to $6700 again, depending on the company offering the coverage. Many of these plans include coverage for Part D prescription drugs, as well as medical benefits.

Medicare Advantage plans have become extremely popular, but the future of the Medicare Advantage program is in doubt. The GAO, in April 2012, issued a report calling for the end of Medicare Advantage, claiming that it is financially unsustainable for the government. The election years should provide a safe haven for AM plans, but beyond that, anyone can guess how they will survive. They are loved and, as the baby boom generation approaches retirement age, their popularity only increases. Retirees, when choosing between their own attention and the government’s propensity to finance government aid and grants worldwide, it would be wise to point these concerns to their officials elected by the federal government. The voting booth is a good place to send a message.