Medicare Advantage Program More Costly, But With New Protections - WSJ.com

 

By JANE ZHANG and VANESSA FUHRMANS

Seniors will likely pay more for Medicare's private health plans next year, but new consumer protections that come with those plans could ensure they remain an attractive alternative to traditional Medicare.

 

The changes come as the Obama administration moves to tighten the screws on private plans offered under Medicare, the federal insurance program for the elderly and disabled. The Centers for Medicare and Medicaid Services, or CMS, recently unveiled stricter terms for insurers offering the so-called Medicare Advantage plans, taking effect next year, and will effectively cut payments to them by as much as 5%.

 

Enrollment in the Medicare Advantage program has surged to 10.5 million enrollees currently from 5.4 million in 2005. These plans wrap physician and hospital services into one, often with extra benefits, such as vision and dental coverage. Instead of paying doctors and hospitals directly, as it does under traditional Medicare, the federal government pays plans to manage care under the Advantage program.....

Medicare Advantage Program More Costly, But With New Protections - WSJ.com