Medicare Advantage Market Will Continue to Benefit Users

May 4, 2010

By Bryce Williams, President & CEO of Extend Health

We’ve been taking a wait-and-see attitude toward the upcoming reductions in subsidies to Medicare Advantage plans. Plenty of stories have predicted big cuts in availability or benefits, but we think any changes will be gradual and the insurance carriers will react in a calm and rational manner.

There’s still a big opportunity here for carriers that want to go after it, and the bottom line for our employer clients and their retirees is the Medicare Advantage market will continue to offer a wide variety of choices. This article appeared recently in Bloomberg Business Week and supports our take on the matter. It’s an interesting read; Steven Helmsley, CEO of UnitedHealth, says

“We have said for some time now that our Medicare Advantage business must ultimately be able to perform better than fee-for-service Medicare on a comparable-benefits basis and with care quality considered. We believe we can achieve and sustain that standard in the majority of our local markets.”

You can read the article in full here.

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