New Medicare Advantage Cuts Could Force Millions of Seniors Off Current Plans

Obamacare Medicare Cuts Will Cripple Medicare Advantage in 2014 Wiping Out Healthcare Plans

 WASHINGTON – Due to the recently announced “steeper than expected” Medicare cuts resulting from Obamacare, millions of seniors could be forced off their Medicare Advantage plans beginning next year. Currently, 27% of seniors are enrolled in the popular Medicare Advantage plans, although analysts predict that big cuts to Medicare Advantage “could wipe out smaller competitors and leave customers with less choice.”

“’There’s no way around it. The proposed Medicare Advantage rates for 2014 are really, really bad,’ Citi analyst Carl McDonald said in a research note, adding that big cuts could wipe out smaller competitors and leave customers with less choice.” (“Health insurer stocks slip over possible Medicare Advantage payment cuts,” Washington Post, 2/19/2012)

“Cuts to Medicare Advantage will disproportionately hurt poor seniors and minorities, the health insurance industry said Thursday.” (“Insurers: Cuts to Medicare Advantage will hit poor, minorities”, The Hill, 2/21/2013)

“Democrats infamously promised that if you liked your healthcare plan, you could keep it under Obamacare,” said CLF Communications Director Dan Conston. “Now with millions of seniors likely forced off plans it’s becoming painfully clear President Obama and House Democrats have broken their promise and seniors deserve an explanation why their healthcare bill is hurting retirees and breaking its promise.”

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 “The question seems to be whether these cuts cull back payments to Medicare Advantage to a level where profit margins get cut or, even further, to the point where health plans decide it’s no longer a smart area for investment.  That will become more clear as health plans adjust to these new, lower payments—or decide that they’re not even worth adjusting to.” (“Health insurer stocks slip over possible Medicare Advantage payment cuts,” Washington Post, 2/19/2012)

 “Here is a guarantee that I’ve made. If you have insurance that you like, then you will be able to keep that insurance.” (Barack Obama, AARP Tele-Town Hall, ,7/28/2009)

Obama Administration Announced Painful Cuts To Medicare (“Proposed 2014 Medicare Advantage rates cut insurer payments”, Reuters, 2/19/2013)

Medicare Advantage Cuts are Deeper Than Expected (“Medicare Advantage stocks slip”, Bloomberg Businessweek, 2/19/13)

Cuts Will Cripple Smaller Plans and Leave Seniors with Fewer Choices (“Health insurer stocks slip over possible Medicare Advantage payment cuts,” Washington Post, 2/19/2012)

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