Tuesday, October 05, 2010

Medicare Advantage Plans Go Poof!

Roughly 21,000 seniors will lose their Medicare Advantage Plans (Medicare Part C) in 2011. According to the Chicago Tribune:

A state agency says insurers have notified about 21,000 Iowans that they will no longer provide the Medicare Advantage plans in 2011.

Under the plan, Iowa seniors get their health care insurance through a private company, not the government Medicare program. The plans provide prescription drug coverage as well as medical and hospital coverage.

Seniors in Georgia will be facing similar issues. Cut backs in funding under Obamacare plus restrictive rules CMS has applied to insurance companies offering Medicare Advantage and PDP's have resulted in many companies opting to withdraw from the market rather than deal with government bureaucracy.

People who lose their Medicare Advantage Plan have the option of returning to traditional Medicare and picking up a Medigap (Medicare supplement) plan to pay for things not covered by Medicare.

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