Quote:
Originally Posted by Happydaz
I was taking with a friend today and I had mentioned that Advantage plans cost the Medicare program more per patient than regular Medicare. He was very surprised to hear that since Advantage plans were originally developed to save money as regular Medicare costs were at that time increasing at a rapid rate. These Advantage plans were supposed to save the Medicare fund money by having drug choice restrictions, physician choice restrictions, specialist access restrictions, etc. Unfortunately, due to bonus payments and other unseen costs the average Advantage patient costs Medicare $321 more than a regular Medicare part B patient!
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You don't understand how it works.
CMS uses the premium it deducts from your Soc. Sec. benefit and pays private insurers to assume the risk of covering you. The insurers collect premiums, write policies and pay bills following Medicare standards.