New State-by-State Data Demonstrate Impact of Proposed Medicare Advantage Cuts on Enrollees

If recent cuts are finalized, beneficiaries in some states would face cumulative premium increases, benefit reductions of more than $120 per month 

News Release from America's Health Insurance Plans, March 17, 2015

Washington, D.C. – Enrollees in New York, Texas, and Louisiana will experience the greatest disruption in their Medicare Advantage coverage if recently proposed cuts to the program take effect, according to a new state-by-state analysis from Oliver Wyman.

The new data follow a recent Oliver Wyman report, which found that changes to Medicare Advantage payments proposed by CMS would result in a 1.2 percent cut in 2016. Over the last two years alone, Medicare Advantage payments have been cut by approximately 10 percent. The accumulation of these cuts, combined with another payment reduction, could leave millions of seniors facing higher costs and reduced benefits -- in some states as much as $120 per month on average, according to the report.

“Seniors cannot afford another cut to their Medicare Advantage coverage. Policymakers should take action to stabilize Medicare Advantage funding for the millions of beneficiaries who depend on the program,” AHIP President and CEO Karen Ignagni said.

The chart below highlights states most affected by the change in payments from 2013-2016:

Already, the recent payment reductions to Medicare Advantage have lead to greater instability for the millions of seniors and individuals with disabilities. The previous Wyman analysis notes that any additional payment reductions, when “combined with the significant cuts that occurred in 2014 and 2015, could result in a high degree of disruption in the MA market.”

As CMS prepares to finalize payment rates for next year, a growing number of voices are asking the agency to protect seniors from any further cuts. Bipartisan majorities in both houses of Congress—including 53 senators and 239 representatives—recently sent letters urging CMS to prevent any additional cuts to the coverage and benefits upon which millions of seniors rely. These voices join a broad array of providers, stakeholders, and seniors from across the country who are warning of the consequences that proposed cuts would have on beneficiaries. Final payment rates will be released on April 6, 2015.

To view the new state-by-state analysis click here.

AHIP's Coalition for Medicare Choices (CMC) recently launched a new grassroots and ad campaign to protect Medicare Advantage seniors. The CMC's 1.8 million seniors are writing letters and emails, making phone calls, attending events andengaging on social media to urge policymakers to protect Medicare Advantage from proposed cuts that could impact their coverage.

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SA: State seniors could face Medicare reductions