Humana, the nation’s second largest provider of Medicare Advantage plans, is being investigated by CMS over allegations that the payer is enlisting its beneficiaries to register opposition to cuts in Medicare programs as part of the health reform initiative. Letters sent out to all of the plan’s members state that “millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable” — a claim Democrats in Congress have immediately denounced as false.

Federal subsidies to private Medicare plans average a higher payout to beneficiaries than those involved in traditional fee-for-service (FFS) coverage under the program for those age 65 and older.

The provider could be violating marketing rules by undermining services Medicare already provides. MA plans have traditionally competed for beneficiaries by offering extra services unavailable to seniors in traditional Medicare or Medigap policies as FFS stand-alones. Seniors pay a premium as part of the MA plan’s benefits — as opposed to fixed benefits provided by the government to payers who participate in Medicare. | LINK

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