[CFrance]

Originally Posted by blueash

When Medicare Advantage plans were introduced they were promoted as a way to save the Medicare plan money. They would only have in network quality doctors, hospitals and labs and do things to encourage patients to stay healthy. The advantage plan was paid a monthly amount from the government and whatever savings they generated was bonus for the carrier. The system was adjusted over 10 years ago with the payments to the Advantage plans increased. By 2009 the average Medicare advantage patient was costing the government 14% more than a person on traditional Medicare. That is a HUGE amount of money. So the promise that the Advantage plans would save Medicare money became completely disproven. The law was changed so that over the next several years the advantage plan must come in line with the traditional plan cost. This can be done by increasing cost to the consumer, decreasing expenses by narrowing networks or doctor/hospital/lab payments, decreasing overhead, cutting CEO pay (never) or however the Advantage plan chooses, but they must get their costs in line with traditional Medicare costs. The ACA also requires the carrier to spend at least 85% of the premium on medical costs and gives bonus payments for companies with high quality ratings. While certainly everyone would like to pay less and get more from their carrier, it is not the government's obligation to provide a better than Medicare plan at a higher cost to the taxpayer to those who want it.

Thank you for a good and true explanation. Hats off to you.