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.