Medicare Advantage Guidelines

The Obama administration issued the 2013 Payment and policy guidelines for health insurers in the United States that wish to participate in the Medicare Advantage program. According to the administration, the proposed changes to the guidelines would result in lower premiums and stable or improved benefits.

Since the Guidelines did not provide an official preliminary estimate of the average net change in net reimbursement, many insurers and financial markets had no idea of ​​the potential impact the 2013 Medicare Advantage guidelines would have had on the industry.

Low premiums and stable benefits are most likely to continue

Private healthcare plans in Medicare, commonly referred to as Medicare Advantage Plans and Medicare Part D plans, have relatively low premium rates and stable benefits. Federal officials believe this trend was likely to continue in 2013.

The officials released a growth percentage for the per capita spending of Medicare, stating that this will be used to set and determine interest rates on Medicare Advantage plans in 2013. In accordance with the Centers for Medicare and Medicaid Services, the agency that manages federal health For the Senior Citizens Program, the 2013 guidance provides for an aggregate annual growth rate of 2.47 percent and a growth rate of 2.3 percent per capita for the following year.

A statement issued by the agency says: “This positive growth trend will help beneficiaries maintain a range of plans without significantly increasing premiums or decreasing benefits.” Officials of CMS stated that the net total amount for 2013 and the final interest rate announcements would be published and unveiled on April 2, 2012.

The CMS said it accepts public comment on the 2013 Medicare Advantage and Prescription Drug Plans payment and policy guidelines. According to the advance notice and draft Call Letter for 2013, the CMS will exercise its powers under the Affordable Care Act to reject offers from plan insurers that propose “too significant” increases in beneficiaries’ cost sharing or a reduction in benefits.

What are Medicare Advantage Plans?  Find out more at

About 25% or 48 million Medicare beneficiaries participate in Medicare Advantage plans. Unlike traditional Medicare plans, plans are offered by private health insurance companies. Unlike Medicare Supplement insurance plans, which only supplement your Medicare parts A and B, it replaces your Medicare.

MA plans are very popular among beneficiaries because they have no medical insurance. All Medicare beneficiaries are guaranteed acceptance, with the exception of end-stage renal disease. These plans are also referred to as Medicare Plan C, as they combine the benefits of Medicare Parts A, B and part of the Part D coverage.

Another attractive part of the MA plans is that they have low premiums. The reason is because they are funded by the federal government. Given the low premiums, you save on healthcare. Note however, that you are limited on the list of doctors and hospitals you can use. Before you decide to be admitted to MA plans, you must weigh the merit and demerit to determine if this is the best plan for your healthcare.