New Avalere Analysis of Medicare Data Shows that on Average Beneficiaries Choosing Medicare Advantage Received Over $70 in Additional Benefits and Reduced Cost Sharing in 2010
Florida Medicare Beneficiaries Opting for Managed Care Received Highest Additional Benefits and Reduced Cost Sharing in the Nation
Washington, D.C. – An analysis by Avalere Health of data on Medicare private plan payment, released for the first time by the Centers for Medicare & Medicaid Services (CMS), found that nationally Medicare beneficiaries that enrolled in a private health plan, called a Medicare Advantage (MA) plan, received on average over $70 in additional benefits and reduced cost sharing in 2010 at no charge to them. The analysis also suggests that there is significant geographic variation in the amount of rebates that MA plans receive from the federal government to reduce cost sharing and add benefits at no charge to beneficiaries. For example, beneficiaries in some areas of the country, like Florida and Louisiana, get more additional benefits, at no cost, by enrolling in MA plans than beneficiaries in areas such as Wyoming and Montana.
“Before now, little was known about the dollar value of the rebates received by MA plans. CMS’ recent data release gives greater insight into the value of these rebates, and thus the magnitude of extra benefits and/or reduced cost sharing available to MA enrollees. The bottom line is that beneficiaries who enroll in MA plans across the country do not all get the same level of additional benefits and cost-savings from their MA plans,” said Bonnie Washington, Senior Vice President, Avalere Health. Read More