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Medicare Advantage Premiums Rising

Inflation may not be too threatening for some Americans these days, but it has a huge impact on the 11.4 million senior Americans currently enrolled in Medicare Advantage plans. These individuals make up 25% of all Medicare beneficiaries and this year will pay on average $39.60 per month. That is a14% jump in one year which is nearly nine times the core rate of inflation.

The Medicare Advantage program, often referred to as Medicare Part C, permits individuals to select a private insurance plan, such as a health maintenance organization (HMO), preferred provider organization (PPO), or private fee-for service plan (PFFS). These private insurance company plans are paid for by Medicare and must offer coverage for everything that is covered by Original Medicare, including hospital and physician services.  In most cases, these plans also offer additional coverage beyond original Medicare such as dental, vision, hearing, prescription drug benefits and even gym memberships.

So why are premiums increasing so quickly? The first reason is due to the way Medicare Advantage plans are funded. The federal government is currently paying more for people enrolled in Medicare Advantage plans than it pays for individuals covered under original Medicare. Therefore, the government has called for a reduction in that subsidy. The companies offering Medicare Advantage plans are now shifting those costs to enrollees in the form of higher premiums.

What should you do if affected by these rate hikes? Well, whether you’re enrolled in a PFFS, HMO or PPO, the trend seems clear. Premiums are likely to keep rising much faster than the rate of inflation so it would be a good idea to start shopping for a new plan now. That way, come open enrollment period later this year, you’ll know what your options are and what plan will suit your needs best. 

Medicare Supplements Made Easy can help you research alternatives to Medicare Advantage plans. Medicare Supplements have many benefits not available in Medicare Advantage plans such as the ability to see any doctor, any specialist, or go to any hospital or facility in the United States. Also, Medicare Supplement plan F pays every out of pocket expense that Medicare leaves you to pay so you have absolutely no out of pocket expenses.  Call today or enter your zip code to get Medicare Supplement rates in your area.

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