Medicare Advantage plans will deliver better value for seniors in 2011

Although insurers will provide greater benefits, required by the new health care law, the premiums paid by private Medicare Advantage (MA) plans will decline next year. The Centers for Medicare and Medicaid Services (CMS) released the MA and prescription drug landscape for 2011. The main issues are:

o Average reguction of premiums paid by MA plans beneficiaries of 1%.
o The Affordable Care Act saved beneficiaries $150 million dollars in out-of-pocket costs.
o Beneficiary access to MA plans is practically the same, 99.7% of the beneficiaries will keep having access to said plans.
o MA market is strong; a 5% growth is expected.
o Better cost-sharing protection for beneficiaries, MA plans should deliver the value they promise beneficiaries, without charging more to the sickest.
o Increased drug coverage, additional to the 50% discount, when in the Medicare Donut Hole (difference between the initial coverage limit and the catastrophic coverage threshold).

More information can be found here: Committee on Energy and Commerce y Centers for Medicare & Medicaid Services.