Keenly Aware of Costs to Medicare, Obama Considers Cuts to MA Plans

[This article posted on March 16, 2009. It is posted within the following categories: CMS, Corporate, Politics & The Law, via Michael Douglas, MD, MBA.]

Barack Obama is firing on all cylinders this March (the mid-term of his First 100 Days) by mulling over his latest plan for changes in the fractured healthcare system: how to properly deal with Medicare Advantage plans. He proposes making cuts in the programs (popular with Republicans) which allow seniors to search the market for private third-party Medicare managed care coverage. Overall, MA plans are beneficial; they allow participants to esentially cover all gapped expenses in acute and ambulatory care (and, in some plans — drug coverage) all for a single monthly premium. Of course, not all healthcare organizations accept payments from all private insurers, or at similar rates. For many organizations and CMS, the thought of dealing with more and more MA plans is an increasingly expensive administrative nightmare. Therein lies the rub. Obama shouldn’t be worried, however, as well informed decisions in this area will go a long way in proving his leadership — at least as far as his commitment to healthcare cost savings is concerned. | LINK

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