By — Ricardo Alonso-Zaldivar, Associated Press Ricardo Alonso-Zaldivar, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/health/popular-medicare-advantage-plans-face-cuts Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Popular Medicare Advantage plans could face cuts Health Feb 21, 2014 6:18 PM EDT WASHINGTON — The Obama administration says cuts to Medicare Advantage plans are on the table for next year. The private insurance alternative is popular with seniors, and the insurance industry is fighting back in an election year. The administration says costs per person in the private plans will grow more slowly in 2015. Analyst Matthew Eyles of Avalere Health estimates a reduction of 1.9 percent. The plans serve nearly 16 million people, about 30 percent of Medicare beneficiaries. The administration says insurers don’t need to be paid as much to turn a profit, because the growth of health care spending has slowed dramatically. But insurers say they’ll be forced to pass on higher costs to seniors, and some plans may drop out. Final rates could change when they are released April 7. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now By — Ricardo Alonso-Zaldivar, Associated Press Ricardo Alonso-Zaldivar, Associated Press
WASHINGTON — The Obama administration says cuts to Medicare Advantage plans are on the table for next year. The private insurance alternative is popular with seniors, and the insurance industry is fighting back in an election year. The administration says costs per person in the private plans will grow more slowly in 2015. Analyst Matthew Eyles of Avalere Health estimates a reduction of 1.9 percent. The plans serve nearly 16 million people, about 30 percent of Medicare beneficiaries. The administration says insurers don’t need to be paid as much to turn a profit, because the growth of health care spending has slowed dramatically. But insurers say they’ll be forced to pass on higher costs to seniors, and some plans may drop out. Final rates could change when they are released April 7. We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now