Medicare Supplemental Insurance

And so the process begins…  In the article below, it talks about the recient law that was passed that prevents the cuts in payments to doctors who provide care for Medicare patients which is good news for the majority of our seniors.  The payments were sustained by reducing the amount the government pays to the Medicare Advantage plans which are run by private insurers such as Humana, United Healthcare, Coventry, and Aetna. The cuts come from plans who provide “fee for service” and payments to private plans with teaching hospitals in their areas, which are called “indirect medical education” payments.

With studies showing that this year (2008) Medicare Part A (Hospital Care) will pay out more than it will take in,  within the next 12 years the trust fund that holds the funds to pay these bills will run dry due to the increase in both the number of seniors entering the program and increases in medical care costs.  

My fears about Advantage plans are coming true.  I only expect this problem to get worse.   If you are shopping for a new program, give us a call so we can discuss your options with all the information you need to properly make a good decision for the long run.

07/09/2008 CNN Money article about the advance of current medicare bill

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