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- Low-Income and Minority Medicare Beneficiaries Rely on Medicare Advantage for their Health Security
Low-Income and Minority Medicare Beneficiaries Rely on Medicare Advantage for their Health Security
For Immediate Release
February 21, 2013
Changes Put Medicare Advantage Coverage at Risk
Check out AHIP’s New Infographic
on Who is Covered by Medicare Advantage
DC – Low-income
and minority Medicare beneficiaries continue to rely on the high-quality health
care coverage provided by Medicare Advantage plans, according to a new report
released by America’s Health Insurance Plans (AHIP). The new report
follows the Centers for Medicare & Medicaid Services’ (CMS) recent
announcement of an additional cut to Medicare Advantage payments next year at a
time when the program is already facing significant payment cuts and a new
health insurance tax included in the health care reform law.
Advantage is the part of Medicare through which private health plans provide
comprehensive medical coverage to seniors and other Medicare
beneficiaries. More than 14 million Americans, or roughly 28 percent of
all Medicare beneficiaries, have chosen to enroll in a Medicare Advantage plan
because of the better services, higher-quality care and additional benefits
these plans provide.
range of research clearly demonstrates that Medicare Advantage plans are more
effective than the fee-for-service part of Medicare at addressing crucial
patient care issues facing the nation, including reducing preventable hospital
readmissions, increasing primary care visits, and managing chronic
Advantage is a lifeline for millions of low-income and minority Medicare
beneficiaries who rely on the high-quality coverage and innovative programs and
services these plans provide,” said AHIP President and CEO Karen Ignagni.
report, based on data from the Medicare Current Beneficiary Survey (MCBS), is
an update to previous research showing the value Medicare Advantage provides to
low-income and minority Medicare beneficiaries. Key findings from the new
report include the following:
28 percent of all Medicare beneficiaries were enrolled in Medicare Advantage
plans. Thirty-one (31) percent of African-American Medicare beneficiaries
and 38 percent of Hispanic beneficiaries were enrolled in Medicare Advantage
(41) percent of Medicare beneficiaries with Medicare Advantage coverage had
incomes of $20,000 or less. By comparison, 37 percent of all Medicare
beneficiaries had incomes of $20,000 or less.
(27) percent of Medicare beneficiaries with incomes of $10,000 or less were
enrolled in Medicare Advantage plans. Thirty-three (33) percent of
Medicare beneficiaries with incomes between $10,000 and $20,000 chose Medicare
Advantage plans; 31 percent of beneficiaries with incomes between $20,000 and
$30,000 were enrolled in Medicare Advantage.
(61) percent of all minority (nonwhite) beneficiaries enrolled in Medicare
Advantage in 2011 had incomes of $20,000 or less; 59 percent of
African-American and 75 percent of Hispanic Medicare Advantage beneficiaries
had incomes of $20,000 or less. By comparison, 36 percent of White Medicare Advantage enrollees had incomes of $20,000 or
information, you can access the full report here and view a new
infographic on the report’s findings here.
(click thumbnail to view
Medicare Advantage Payment Changes Will Hurt Seniors
week unexpectedly proposed a 2.2 percent reduction in Medicare Advantage
payments for 2014, which will result in significant disruption for the millions
of seniors and people with disabilities who rely on this critically important
part of Medicare. These cuts will compound the $200 billion in Medicare
Advantage cuts and the new health insurance tax included in the health care
Congressional Budget Office projects that the reform law's payment cuts alone
will result in three million fewer people enrolled in Medicare Advantage.
at Oliver Wyman estimate that the health insurance tax will result in seniors
facing $220 in higher out-of-pocket costs and reduced benefits next year and
$3,500 in additional costs over the next ten years.
cumulative impact of the new proposed payment reduction, the reform law’s
funding cuts, and new health insurance tax will reduce Medicare Advantage
payments next year by more than eight percent, or approximately $11
billion. These cuts will result in seniors facing higher out-of-pocket
costs, reduced benefits, and fewer health care choices.
cannot tax and cut Medicare Advantage this much and not expect seniors to be
harmed,” Ignagni said in a statement released on Wednesday.
Providing Health Benefits for Over 200 Million Americans.