Medicare Premiums Going Down in 2011
September 24 2010
Despite much confusion over how the Affordable Care Act will affect Medicare, the truth is that the new law will strengthen the program. If anyone wanted any more proof: it was just announced that while commercial insurance plans for Seniors are getting more expensive, Medicare premiums will fall next year.
How is this happening? Medicare officials are holding down premiums and co-payments by negotiating with insurers, because of additional powers granted them by the Affordable Care Act.
The New York Times reported on the issue yesterday:
John K. Gorman, a former Medicare official who is now a consultant with clients in the insurance industry, said: “Today’s announcement shows that there is a new sheriff in town. Medicare officials were very specific and very forceful. Insurers succumbed to the government’s demands and stayed in the Medicare market because they have become much more dependent on Medicare business.”
Payment rates for Medicare Advantage plans will generally be frozen next year at 2010 levels, with rates subject to tighter constraints in subsequent years. The cuts are expected to save $136 billion over 10 years.
Read Robert Pear’s full article here.
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"Under new plans, no child under age 19 will be denied coverage for a pre-existing conditions, period. Adults who have been without insurance for six months and who have been unable to obtain insurance because of a pre-existing condition, can apply for coverage under the Pre-Existing Condition Insurance Plan (PCIP)."
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Insurers can no longer cut someone after the fact.
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New screening procedures are now in place for health care providers to eliminate fraud and waste in the health care system.
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Medicare Part D enrollees who hit the Medicare prescription drug benefit gap in 2010 will automatically receive a $250 rebate check.
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Effective immediately, qualified small employers get tax credits of up to 35% of premiums for offering coverage.
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