If you happen to be a Medicare Advantage fan, and feel the service has done right by you, you will not be too impressed to find out that in 2010, Medicare Advantage will no longer be offered by some of the largest health insurance companies in the US – which includes Well Care and Coventry.
Shocking isn’t it? Will other smaller companies go the same route? Chances are smaller companies will indeed follow in the footsteps of their bigger competitors. If the big boys on the block can’t afford to offer Medicare Advantage any longer, then it’s not likely smaller companies will have much success staying afloat either.
You might be wondering what on earth is going on and why you are about to lose what you feel is a good health care plan. Well, here is the deal. The government has, since the inception of Medicare Advantage, seriously over funded it. In fact, the doctors in the various networks actually got paid more than Medicare paid under the auspices of Medicare Advantage.
Given the poor state of the US economy, the new administration in the White House, and the fact that President Obama is now trying to straighten up the health care system, over funding to this program (Medicare Advantage) will cease in 2010. Evidently there will be other programs faced with funding crunches in the year to come.
Will these funding changes make a difference in how those 65 and over or under 65 and on Medicare disability use the health system? Yes indeed, as they will need to be absorbed into the Medicare system in some other way, and use other alternatives for their health care needs.
This coming change will affect tens of thousand of people, and the health insurance system will be in a total uproar for the better part of 2010 trying to sort out all the new changes. Think smart and call a health insurance agent now and find out what you may do to switch from Medicare Advantage to something else.
Richard Cantu is with Medicare supplements resource, GoMedigap.com. To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.
