Medicare Advantage plans will see a cut of base payments next year, according to President Joe Biden administration’s latest adjustments.
The move has ignited a firestorm of concern over the reductions in supplemental benefits for seniors living on fixed incomes.
Sen. Rick Scott, R-Fla., and other critics blasted the decision and warned that it could translate into slashes in health care coverage for many seniors who rely on the plans.
The advocacy group FreedomWorks claimed the reductions, $33 monthly or $396 annually per beneficiary, were a move by the Biden administration to push America towards the Medicare for All system advocated by socialist leaders.
“This Medicare Advantage benefits cut will result in the 2.8 million Florida seniors currently enrolled in Medicare Advantage, many of whom live on a fixed income, having their supplemental benefits reduced by $33 per month, or $396 per year,” Scott said in a press release on Wednesday.
The slash in benefits underlined the growing debate over the future of Medicare Advantage, which enrolls over half of all Medicare recipients. The program has been criticized ove its cost to taxpayers, compared to the benefits it provides enrollees.
“The takeaway from Biden’s actions is clear: Democrats don’t give a damn about the 2.8 MILLION Florida seniors enrolled in Medicare Advantage who will see costs go up by nearly $400 a year,” Scott said.
FreedomWorks President Adam Brandon slammed the Biden administration’s decision to slash Medicare benefits.
“Yesterday, the Biden administration continued their attacks on the private sector option for seniors on Medicare, Medicare Advantage. This is the second cut in two years,” Brandon said in his own statement. “This latest round of cuts will cost seniors an extra $33 per month. That’s a $396 per year rate increase for a cohort largely on fixed incomes and still reeling from terrible inflation.”
“Medicare Advantage is so well-liked and so popular, over 50% of seniors – about 33 million – choose it over traditional Medicare,” the statement continued. “It’s incredible to me the administration is choosing to assault one of the most popular programs for our seniors.”
“Cutting a program as popular as Medicare Advantage seems out of character for most Democrats, unless these cuts are a necessary stepping stone towards one of their ultimate goals – Medicare for all,” Brandon claimed.
“Democrats have been upfront about wanting a single-payer, Medicare for all type system,” he concluded. ”Perhaps Medicare Advantage and its 33 million customers are simply collateral damage in getting there.”
The decision to reduce the benefits comes from the Centers for Medicare and Medicaid Services’ [CMS] annual refinement of their risk adjustment coding system.
Initiated under Biden last year, the annual adjustments are meant to keep payments to Medicare Advantage accurate with the health of enrollees.
Despite the cuts, Medicare Advantage plans are projected to receive a net payment increase of 3.7 percent, equivalent to $16 billion, due to rising health care costs.
The CMS said the reduced benefits are aimed at bettering health equity and focusing on more person-centered care. The CMS said the cuts are important to maintaining Medicare Advantage’s sustainability.
The Horn editorial team