The Wrong Choice for America :
Democrats’ Massive Tax Increases and Medicare Cuts
Medicare Advantage Highlights
The Medicare Advantage program is a critical source of comprehensive medical coverage for over eight million people – roughly 20 percent of all Medicare beneficiaries. The program provides comprehensive coverage with additional choices the seniors appreciate. According to a bipartisan poll earlier this year, 90 percent of MA enrollees are satisfied with their Medicare plans. Another survey, this one of doctors, found that 75 percent believed cutting Medicare Advantage would have a negative effect on seniors enrolled in the program. A study by an independent researcher and former Clinton Administration official estimates that Democrats Medicare cuts would result in 3.2 million seniors losing their Medicare Advantage coverage, and Medicare Advantage enrollment becoming zero percent 24 states.
Choices:
All Medicare beneficiaries may now choose a Medicare Advantage plan. The number of beneficiaries choosing to enroll in these options has increased by almost 54 percent since 2004.
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ENROLLEES
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MA PLANS/COUNTY
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% OF BENEFICIARIES WITH
ACCESS TO AN MA PLAN
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2004
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5.4 million
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1.3
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77
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2007
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8.3 million1
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19.7
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100
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1As of January 2007. Includes enrollees in MA coordinated care and private fee-for-service and other private plans such as Cost plans.
Medicare Advantage benefits disproportionately low-income, minority and rural beneficiaries:
Ø Of those who are Medicare-eligible, 40 percent of African-Americans and 53 percent of Hispanics choose to enroll in Medicare Advantage plans.
Ø The MA program is the most popular form of supplemental coverage for beneficiaries with incomes between $10,000 and $20,000.
Ø Nearly half of all Medicare Advantage enrollees and 64 percent of minority enrollees had incomes less than $20,000.
Ø With the changes in the Medicare Modernization Act, rural beneficiaries for the first time have access to Medicare health plans that help to coordinate their care.
Savings:
Medicare Advantage’s emphasis on competition is creating significant value for beneficiaries and taxpayers.
Ø According to CMS, in 2007 Medicare Advantage plans provided beneficiaries with an average $86 per month in savings compared to what they would pay in the Medicare fee-for-service program.
Ø Last year, beneficiaries enrolled in Medicare Advantage plans saved approximately $6.8 billion as a result of the plans covering additional Medicare costs.
Ø Last year, Medicare Advantage plans also returned $26 per beneficiary per month - or approximately $2 billion annually - to the U.S. Treasury as a result of the new MA bidding system in which MA plans that bid below benchmark rates return savings to the government.
Better Benefit:
Medicare Advantage plans provide enrollees with access to better benefits than fee-for-service Medicare.
Ø Today, almost 99 percent of all beneficiaries have access to a Medicare Advantage plan that caps out-of-pocket costs, a benefit not offered in the fee-for-service Medicare program
Ø Close to 99 percent of beneficiaries have access to a Medicare Advantage option which provides additional coverage in the prescription drug benefit gap.
Better Care:
By placing a strong emphasis on preventative care, Medicare Advantage plans offer a better approach to health care than the fee-for-service program. As a result, research studies consistently show that MA plans provide better care. While Medicare Advantage plans are required to cover all the basic services provided under the traditional programs as well as all medically necessary services, they also offer additional benefits that may otherwise be too costly for beneficiaries if it weren’t for their Medicare Advantage plan.
Additional benefits provided include:
Ø Vision benefits;
Ø Hearing benefits;
Ø Dental benefits;
Ø Fitness benefits;
Ø Mental health and brain acuity benefits; and
Ø Alternative health benefits such as chiropractic services.
In 2006, many low-cost plans offered these “extra-benefits” and enrollment in plans with vision, hearing, and alternative benefits was very high.
