Obama loves Medicare Advantage?
Enrollment is up and premiums are down in Medicare Advantage (MA) as a result of the healthcare law, the federal health department reported Wednesday. Health and Human Services (HHS) Secretary Kathleen Sebelius issued projections that MA enrollment will increase by 11 percent over the next year while premiums hold steady. Sebelius attributed a 28 percent rise in MA enrollment and 10 percent drop in MA premiums since 2010 to the Affordable Care Act, which remains politically divisive.
In fact, the only reason enrollment is up is because the Obama administration is using “bonus money” to prop up these plans before ObamaCare cuts kick in after the election. Over the next ten years, Medicare spending will be reduced by $716 billion, and of the amount, Medicare Advantage programs will lose $156 billion. Medicare’s Chief Actuary predicts that one of every two enrollees will lose their coverage once these cuts become effective. By one estimate:
By 2017, Medicare beneficiaries who would have enrolled in Medicare Advantage under prior law will lose an average of $1,841 due to the MA changes alone and $3,714 when the effects of the entire bill…are considered.