While the Obama administration is trying to scare people about the automatic
spending cuts that are scheduled to hit this Friday, they don't want to talk about its own devastating cuts in
Medicare. On Friday, February 15, the Centers for Medicare and Medicaid
Services (CMS) announced $716 billion in cuts over the next ten years.
Instead of being put this money towards the debt, most of the money will go toward a new
entitlement -- ObamaCare's vast expansion of coverage for the uninsured.
Savings to Come Out of Medicare Advantage Plans
At least half of the savings will come out of Medicare
Advantage, under which a full 28 percent of seniors buy privately managed
health insurance that often includes added benefits such as vision and dental
care or chronic-illness management. In exchange, patients agree to stay within
a medical network, which helps insurance companies manage their costs. The
program is most popular with Hispanics and African-Americans.
A study by CMS
found that 38 percent of Hispanics and 31 percent of African Americans on
Medicare were enrolled in Medicare Advantage, compared with 27 percent of
whites. Despite the fact that the program reports high levels of consumer
satisfaction,the Obama administration is determined to cut it, even if it means driving
millions of seniors back into traditional, one-size-fits-all Medicare.
Restriction of Senior's Choices
They want to restrict seniors' choices by
curtailing private plans competing in Medicare. To add cynicism to
injury, the Obama administration postponed the Medicare Advantage cuts until
after the 2012 election, using a slush fund to tide the program over and conceal
the true costs of Obamacare to seniors. The cuts are so much larger than
expected that health care stocks tanked across the board after they were
announced. The Congressional Budget Office
projects that the payment cuts will result in an enrollment drop of 3 million
for Medicare Advantage which would turn almost
every plan in the industry unprofitable.
Seniors must pressure their Representatives and Senators to revise or reverse the cuts before they are made final in
April. Some adjustments are possible, but the law will continue to mandate a
squeeze on Medicare Advantage. President Obama promised Americans in 2009 that
"if you like your health-care plan, you can keep your health-care
plan." The reality is that not only are millions of Americans likely to
lose health-care coverage from their employers, but millions more will lose the
Medicare Advantage plans they've grown used to.
Seniors Will be Forced Back Into Traditional Medicare
Unless it is changed,
ObamaCare will relentlessly restrict the choices seniors have by forcing them
into traditional Medicare with all of its attendant contradictions,
restrictions, and waste. Medicare Advantage has its problems, but they could be
surgically addressed. Instead, the bureaucrats running ObamaCare are set on
slowly starving the program. By focusing solely on the politics of the sequester,
the media are ignoring the Obama administration's bigger, more brazen threat to
vulnerable American seniors.
Email your Medicare questions to me at Ask Will , wwillbar@gmail.com.
Leave your comments below.
Financial Stakes for Chicagoland is where you get information for making key financial and health decisions for yourself or for your business. Information on Medicare Advantage Plans, Medicare Supplement Plans, Major Medical Plans and Final Expense Plans are available as well as Business, Non-Profit, and Property and Casualty Insurance. If you need to Buy or Refinance Real Estate, this is also the place to come. Call (773)614-3201 for a free consultation or e-mail me at bwillbar@gmail.com.
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