Pretty recently Humana starting sending out a letter to customers enrolled in their Medicare Advantage plan warning that the new health reform plan "could mean higher costs and benefit reductions to many on Medicare Advantage." So some goverment people told Humana to stop.
"CMS is concerned that, among other things, this information is misleading and confusing to beneficiaries, represents information to beneficiaries as official communications about the Medicare Advantage program, and is potentially contrary to federal regulations and guidance," wrote Teresa DeCaro of Medicare's Drug and Health Plan Contract Administration Group to Humana.
-http://www.npr.org/blogs/health/2009/09/humana_letter_on_medicare_adva.html
I don't think Humana should be telling this to people. It's true, but it goes against what I want and it's true because the government is paying more for Medicare Advantage than for regular Medicare and wants to even it out. The cuts made to Medicare Advantage will cut Humana's profit and will get Humana to raise costs and/or cut benefits.
While Humana's letters may not be fully informative about the new health care plan, it's informing the people about the part that pertains to them. It seems like Humana should be able to send the letters. I'm pretty sure there's something like 10 million people on Medicare Advantage, but there's something like 80 to 90 million without health insurance. It'd be great if everyone could have health insurance.
Here's my response to my wife, who asked me what some people were talking about:
One of the ways that this new health bill is supposed to be paid for is by making cuts to Medicare. Medicare Advantage is a program where people pay, out of their pocket, a health insurance company for something better than regular Medicare. It sounds like a fantastic idea to me, but the government is paying 14% more per person for Medicare Advantage, than for regular Medicare. I'm still looking at stuff, but it seems to me that the new plan evens it out. Instead of Medicare Advantage people getting 114%, while people with regular Medicare get 100%, everyone will just get the 100%, but the care is supposed to become better than it is now.
Humana's using scare tactics, but they might not be completely full of ..it. According to the article you linked me to, "Nearly half of Humana's yearly revenue comes from Medicare Advantage". Humana will lose money when the government stops paying so much more to the insurers. Humana will likely raise costs to the people on Medicare Advantage or cut benefits. The government will improve regular medicare, so quite possible that in the long-run, insurers will have to improve Medicare Advantage to compete with Medicare.
The change in Medicare Advantage doesnt start until 2011. It's not an instant thing, it will phase out the overpayment from 2011 to 2014.
Just found this: ( http://waysandmeans.house.gov/media/pdf/111/MEDICAREADVANTAGE.pdf )
"MA overpayments exceed $1,000 per MA enrollee per year, even though only a fraction is returned to beneficiaries through cost sharing or benefit changes. MedPAC estimates that the national cost of MA overpayments is $12 billion a year. There is no dispute that MA overpayments exist or that they are projected to cost taxpayers and beneficiaries more than $170 billion over the next 10 years; CBO, MedPAC and numerous independent experts validate these findings. HR 3200 phases out these overpayments over three years, starting in 2011 (because the 2010 rates are already set) so that MA plans are paid on a level playing field with traditional fee-for-service Medicare."
"The more efficient way to provide new benefits for Medicare beneficiaries and the only way to assure access for all Medicare beneficiaries who need the new benefits is to add them to the traditional Medicare program. Thats what HR 3200 does. It is important to note that when benefits are added to Medicare, they automatically become part of the basic benefits in MA, but are no longer decided randomly at the discretion of the plan or given only to people who enroll in private plans. It is a more equitable and efficient approach. Under HR 3200, all seniors and people with disabilities will obtain preventive services with no copayments, Medicare prescription drugs without the donut hole, better access to mental health providers, and improved financial help for those with low-incomes. PREPARED BY THE HOUSE COMMITTEES ON WAYS AND MEANS, ENERGY AND COMMERCE, AND EDUCATION AND LABOR "
"Forty-five percent of people eligible for Medicare believe, 'the government should stay out of Medicare'".
This makes me very worried.