Over 19,000 senior citizens in New York that relied on Medicare Advantage
through MVP Healthcare will be required to look for new coverage as two
of the five Medicare plans are slated to be dropped. The three remaining
plans carry higher co-pays and premiums.
What is Medicare Advantage?
Medicare Advantage is a program that offers subscribers a more comprehensive
coverage than traditional Medicare. It can cover outpatient visits, hospitalizations,
and many prescription drugs. Some plans include extras such as gym membership
to support more comprehensive personal wellness.
Around 30% of all of those that are eligible for Medicare are enrolled
in an Advantage plan, with New York State having the third largest enrollment
in the nation. Those that are unable to make a selection for a new plan
will be immediately put on traditional Medicare by the end of December 2014.
What the Cuts Mean for Those Insured
Until all subscribers have been notified, details of the affected Medicare
plans cannot be released to the public. However, it is known that MVP
Healthcare will be dropping the insurance policies that are the most expensive
for the insurer. The remaining plans will incur premium increases ranging
from $29- $64.50 per month and a raise in co-pays from $20 to $50.
The insurer cites a few reasons for the change to Medicare Advantage, including:
- 12% cut to federal reimbursement for Medicare Advantage
- Federal sequester on health care spending
- Reduced Part D coverage subsidies
- 2% tax on health insurance premiums
- Pressure on the system due to an increasing elderly population
Currently, the federal government pays 85% of Medicare Advantage premiums,
with members and insurers covering the rest.
With an increasing elderly population, it is more and more important for
our country to make the health needs of this population a priority. If
you or a loved one is facing problems with Medicare access or coverage,
contact the Zendeh Del Law Firm, PLLC.