Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Study: Cuts to Medicare Advantage Top $1,500 Per Senior Study: Cuts to Medicare Advantage Top $1,500 Per Senior

This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Health Care

Study: Cuts to Medicare Advantage Top $1,500 Per Senior

Analysis says Obamacare cuts will affect all beneficiaries.

(Alex Wong/Getty Images)

photo of Sam Baker
April 17, 2014

Obamacare's Medicare Advantage cuts will lead to benefit reductions of about $1,500 per beneficiary, according to a new analysis from a conservative think tank.

The American Action Forum, founded by former Congressional Budget Office Director Douglas Holtz-Eakin, said almost all Medicare Advantage beneficiaries will feel the effect of cuts to the program.

The federal Medicare agency recently backed off a proposal to make additional cuts to Medicare Advantage—the second year in a row it has proposed and then abandoned such reductions. But the AAF analysis says the reductions mandated in the Affordable Care Act will still affect benefits for most seniors who use the program.

 

Roughly 30 percent of Medicare beneficiaries—about 16 million seniors—use the privately administered Medicare Advantage plans. The program continues to grow, despite the Affordable Care Act's cuts. Enrollment rose in 2014 to 15.9 million—roughly a 9 percent increase from the year before, according to a recent analysis from the consulting firm Avalere Health.

According to AAF, though, seniors who use Medicare Advantage are facing an average benefit loss of about $1,500 per year compared with pre-Obamacare rates. From 2014 to 2015, the average cut is about $300, or 3 percent.

The effects vary by state. Some, such as Alaska, will see slight increases in payments to Medicare Advantage plans, while others, including Louisiana, will face higher-than-average reductions.

LIKE THIS STORY? Sign up for Health Care Edge

Get your daily dose of National Journal's health care coverage.

Sign up form for Health Care Edge
Job Board
Search Jobs
Biomedical Service Internship Position
American Society of Civil Engineers | Flint, MI
Fire Sprinkler Inspector
American Society of Civil Engineers | Charlotte, NC
Professional Development Program Engineer
American Society of Civil Engineers | Farmington Hills, MI
Deputy Director of Transit Operations
American Society of Civil Engineers | San Jose, CA
Transportation Planner
American Society of Civil Engineers | Salinas, CA
Assistant Professor - Water Resources/Ecological Engineering
American Society of Civil Engineers | Auburn, AL
Product Manager - Chemical Development and Supply - Tulsa, OK
American Society of Civil Engineers | Tulsa, OK
Commissioning Intern
American Society of Civil Engineers | Chicago, IL
Assessment and Remediation Team Lead
American Society of Civil Engineers | Regina, SK
Business Development Manager
American Society of Civil Engineers
Sr. Controls Systems Engineer
American Society of Civil Engineers | Grand Island, NE
Senior Project Manager- Transportation
American Society of Civil Engineers | San Antonio, TX
Materials Engineer 2
American Society of Civil Engineers | IL
Land Surveyor
American Society of Civil Engineers
Quality Engineer
American Society of Civil Engineers | Attica, IN
 
Comments
comments powered by Disqus