MEDICARE ADVANTAGE 2013 SPOTLIGHT: PLAN AVAILABILITY AND PREMIUMS

Kaiser: 11/28/12

Under the current Medicare program, beneficiaries may enroll in either the traditional fee-for-service Medicare program, or a private plan, such as an HMO or preferred provider organization (PPO), in what is now known as the Medicare Advantage program. Medicare Advantage plans receive funds from the federal government (Medicare) to provide Medicare-covered benefits to enrollees. As of September 2012, 13.7 million (27%) beneficiaries were enrolled in a Medicare Advantage plan. Despite reductions in payments enacted in the ACA, and concerns about the effects of these reductions for plans and beneficiaries, the Medicare Advantage marketplace remains robust in 2013, with little change in the number of plans offered, and relatively modest increases in average premiums. Among enrollees in Medicare Advantage plans with prescription drug coverage (MA-PDs) who remain in the same plan in 2013, average premiums will rise by just over 10 percent, from $34.41 per month to $38.58 per month. Read more