Members of Medicare Advantage plans may lose some of the extra benefits these plans offer, such as hearing coverage, vision coverage and gym memberships; lose access to Part C plans in their geographic area; and face higher out-of-pocket costs, such as co-pays and deductibles.
The law will cut more than $200 billion from payments to the plans, and the CBO projects these benefit reductions and access problems will cause MA enrollment to decline from 11.7 million enrollees in 2011 to 7.5 million in 2018 and 7.8 million in 2019.
When Congress cut payments previously, many plans withdrew from markets that became unprofitable and membership in the plans dropped significantly. This could happen again.
Part C plans receive more money per participant from the federal government than is spent on the average beneficiary under the regular Medicare system. The law aims to close this gap by reducing the extra payments over the next several years, starting in 2012.
Will There be Regulations on how Medicare Advantage Plans (Part C) Spend Their Money Under the Affordable Care Act (ACA)?
What Are Medicare Advantage Plans (Part C)?
What Year Were Medicare Advantage Plans (Plan C) Established?
How Are Medicare Advantage Plans (Part C) Funded by Medicare?
How Are Payments to Medicare Advantage Plans (Part C) Calculated?