We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
Medicare Advantage benefit cuts likely. CMS to reduce MA subsidies
There has been an ongoing controversy that Medicare Advantage plans game the system with the result they are paid more than justified by Medicare. That’s why some have no premiums and add extra benefits. (That plus limited networks and aggressive managed care).
If you have a MA plan keep this in mind and also that you may not be able to switch to a Medigap plan in the future.
Some of that may change
Medicare Advantage beneficiaries could see their supplemental benefits reduced or cost-sharing increase by $33 a month on average in 2025, according to an analysis from the Berkeley Research Group.
The analysis, published Feb. 26, was commissioned by the Better Medicare Alliance, a pro-MA group backed by insurers.
CMS’ proposed rates for Medicare Advantage plans in 2025 will not offset rising medical costs, the research group found. Every major insurer has indicated medical costs in the program are on the rise.
The analysis projected medical costs will rise between 4% and 6% in 2025. CMS’ proposal would cut benchmark payments to plans by 0.16%, according to the agency’s estimates.
Plans could offset some of the difference between CMS’ payments and rising medical costs through various measures, including administrative savings, analysts wrote.
“However, there are limits to a plan’s ability to control costs and thus the expected increase in medical inflation will likely impact beneficiaries,” BRG analysts wrote in the report.
On average, Medicare Advantage beneficiaries will see a $33 reduction in benefits each month in 2025, BRG estimated. This average cut varies by state, with beneficiaries in Nevada seeing an estimated $90 per month reduction in benefits, while beneficiaries in Wyoming will pick up an estimated $34 in additional benefits per month.
Dual-eligible (Medicaid and Medicare) beneficiaries will see higher reductions in benefits, at an estimated $50 per month, according to BRG.
Some payer executives said they will consider cutting supplemental benefits in plans to offset lower payments from CMS.
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