In a very quiet way, the Biden administration announced that they would reduce Medicare Advantage base payments next year. This announcement added to fears about an unstable economy.
Multiple reports suggest the administration plans to reduce base salary by 0.16 percent. It may not seem like much, but it can have a major impact on enrollees.
What They Say: “These policies will put more pressure on the benefits and premiums of 33 million Medicare beneficiaries renewing their coverage in the fall,” said Mike Tuffin, CEO of AHIP.
Duane Wight is a senior Bloomberg analyst and he stated that the bids due on June 1 could reveal reduced premiums or benefits.
According to Raymond James analyst Chris Meekins, “President Biden’s team is betting MA beneficiaries won’t realize the benefits Biden’s team caused them to lose until the January 2025 election.”
It was obvious that a new round would be held. They have now made it official.
The potential cost increase under Medicare Advantage is a concern for many Democrats. More than half of Medicare-eligible seniors in the United States use this program. The program is not only a concern for the Democrats.
Compared to traditional Medicare beneficiaries in 2021, Medicare Advantage enrollees were more likely to be Black or Hispanic, have incomes below $20,000 per person, live in urban areas, and have lower levels of education (Figure 3, Appendix Table 1). In addition, dual-eligible individuals account for a larger share of Medicare Advantage enrollees (22%) than traditional Medicare beneficiaries (16%).
Repeat the first sentence to emphasize it.
Medicare Advantage enrollees tend to be Black or Hispanic, have an income of less than $20,000 per year, reside in the city, and have lower levels of education.
The administration has been trying to keep this matter quiet. They have not made any major announcements, and the media has not covered it extensively.
Does anyone know you’re cutting benefits for your base in an election year, or are you ignoring it?
Rick Scott is a Senator from Florida. Florida has a lot of retirees.
He stated in a press statement that “Biden’s war on seniors was disastrous, especially for seniors with fixed incomes already struggling to keep up with skyrocketing costs. ”
He understands that this will impact his constituents. The Biden administration does not.
