As if the freeze on social security cost of living increases was not enough of a reality check, senior citizens can look forward to an average increase of 25% in Medicare Advantage (MA) premiums next year. In response to the government subsidy of plan perks outside of traditional Medicare for certain preventative care and ambulatory care services, the Obama admin has made cuts in payments (by approx 4.5%) to third parties under this plan a top priority. Insurance is responding by hiking monthly rates on average, from $32 to $39. Rather than having the option of establishing provider networks under a 2008 law [PDF] that allows the formation of those networks for plan enrollees, many companies are forgoing this process and, instead, are raising monthly premiums.

Accountability in the MA sphere of healthcare delivery to seniors is only the beginning in correcting fraud so rampant in its foundation. Naturally, health insurance lobbies are concerned and frame this development as a potential loss of adequate care access at the expense of a greater healthcare consumer burden. The realization of many beneficiaries of these rate hikes should benefit and not hinder those who wish to take part — as the desire for cost efficient care alternatives in this portion of the healthcare marketplace is the primary driver. | LINK

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