Well Care and Coventry, two of the largest companies in the Medicare health insurance business will no longer be offering Medicare Advantage in 2010.
Yes, they will be totally out of business, as they can no longer afford to offer the Medicare Advantage plan. Why is that? This is because the government is reducing the amount of money paid to companies who offer Medicare Advantage.
When things like that happen, it puts companies out of business, as they are no longer able to compete to retain the business. The bad part here is that Medicare Advantage was over funded by the government and thus paid out more to the doctors in various networks. This meant the program would hardly ever run a profit unless it were funded by the government.