9/19/2012 @ 11:00AM
The Obama administration this morning said enrollment in the so-called Medicare Advantage program is projected to increase by 11 percent “in the next year and premiums will remain steady,” U.S. Secretary of Health and Human Services Kathleen Sebelius said.
Sebelius added that Medicare Advantage premiums have dropped by 10 percent since President Obama signed the Affordable Care Act law two years ago. Meanwhile, enrollment has risen 28 percent during that time.
The administration credits the Affordable Care Act as well as increased enrollment. The Obama administration has also made quality measurement a focus, rating the private health plans that operate in the program.
The major insurance companies that contract with the Medicare program to offer seniors’ benefits include Aetna (AET), Humana (HUM) and UnitedHealth Group as well as Blue Cross and Blue Shield plans and other players.
“Thanks to the Affordable Care Act, the Medicare Advantage and Prescription Drug programs have been strengthened and continue to improve for beneficiaries,” Sebelius said in a statement. ”Since the law was enacted in 2010, average premiums have gone down, enrollment has gone up, and new benefits and lower drug costs continue to help millions of seniors and people with disabilities.”
The Centers for Medicare & Medicaid Services said the average Medicare Advantage premium next year will rise just $1.47 compared to this year to $32.59, according to the government’s projections.
The Obama administration has been criticized for slashing more than $140 billion in payments to Medicare Advantage plans over the next decade by Republicans and other supporters of Medicare Advantage, but such plans that achieve certain quality ratings will be able to attract bonus payments ranging from 3 to 5 percentage points, according to stipulations of the Affordable Care Act, which increases payments based on a “5 star” rating system.
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