Health Regulators Recommend Freeze Of Medicare Advantage Plans

04.06.10 | FL News Team

Government regulators want Medicare Advantage plans to be paid at the same rate next year, unchanged from what they're currently being paid. That's under the new healthcare reform law, which calls for reductions in payments to Advantage plans in 2012. The new law requires sellers of Medicare Advantage plans to spend at least 85 cents of every dollar collected on actual medical care -- or face penalties. Insurers claim the cuts are too deep and could force seniors to pay more out-of-pocket costs or see reduced benefits.

 Medicare Advantage plans offer people age 65 and older an alternative to the traditional, fee-for-service Medicare program run by the federal government. Benefits of the plans generally involve more complete prescription drug coverage as well as vision and dental services. More than ten-million of the 45-million Americans enrolled in Medicare pay for the extra coverage.