Medicare Advantage Premiums Fall as Enrollment Rises

September 19, 2011

The Department of Health and Human Services (HHS) recently announced that Medicare Advantage premiums will average four percent lower in 2012 than they were in 2011, and enrollment is expected to increase 10 percent. In addition, 99.7% of people with Medicare with still have access to MA plans in 2012, and benefits will remain about the same as those offered in 2011.

There has been a lot of controversy over the fate of MA plans since health care reform passed which caused many seniors to worry about reduced services, increased out-of-pocket costs, and being driven out of Medicare Advantage plans back to original Medicare. According to the new HHS data, those fears can be put to rest as the future for Medicare Advantage appears to be very promising.

Medicare Advantage plans will be eligible this year to receive financial incentives from CMS for high scores based on their Star rating. CMS deputy administrator Jonathan Blum said, “Plans that do a better job serving the needs of their Medicare members should be rewarded and all plans should be encouraged to improve their performance.”

Related Extend Health blog posts:

Insurers Target Medicare Advantage HMOs for Acquisition

MA plans get a little financial help from HHS

70% of seniors think PPACA will hurt Medicare benefits

Visit Extend Health — the nation’s largest private Medicare exchange.

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