If You Like Your Medicare Advantage Plan, You Probably Cannot Keep It

Robert Book / October 29, 2010

Earlier this year, Richard Foster, the Chief Actuary for the Centers for Medicare and Medicaid Services (CMS), issued a report projecting that about half of all seniors and disabled Americans enrolled in Medicare Advantage plans will be pushed out of that program due to the new health care reform law, the Patient Protection and Affordable Care Act (PPACA).

In response to a request from Sen. Charles Grassley (R–IA) and three other Republican Senators, Foster recently confirmed that in addition to losing access to the health plan of their choice, those who are able to remain in Medicare Advantage plans will face substantially higher out-of-pocket costs as a result of the cuts to Medicare Advantage in the new law.

The Senators requested an analysis of the relative impact of the changes on urban compared to rural areas. The letter from the Actuary declined to answer that question, saying his office had not made such a calculation.

However, we have done these calculations. Jim Capretta, Jason Richwine and I have calculated the impact of the Medicare Advantage changes—both in terms of lost enrollment, and lost dollars—for seniors and the disabled not only nationally, but regionally as well. (more…)