Talk of The Villages Florida - View Single Post - Medicare Advantage economics
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Old 08-06-2025, 06:25 AM
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Quote:
Originally Posted by tophcfa View Post
Yes, Medicare policyholders are indeed taxpayers, or at least they should be or they would be on Medicaid. The point is, Medicare Advantage policyholders cost the taxpayers 22% more per policyholder than Medicare policyholders that go the supplement plan option. So the point that MA plans are not good for taxpayers is valid. And yes, traditional Medicare, with a supplemental plan, is much closer to being non profit than the Medicare Advantage option, which is run by private insurance companies optimizing the inefficiencies of the government. With traditional Medicare and the supplemental option, premiums are typically not lower, but the coverage is significantly higher and the taxpayers supporting that option are not getting screwed nearly as hard.

So in summary, your points listed above are all valid except for the lower premiums argument. With the government option, premiums are higher, because the government isn’t getting screwed by private insurance companies driving costs up by 22% more per policyholder. That’s why the Medicare Advantage experiment is failing miserably for taxpayers, and changes will be necessary. The whole train wreck happening with the Villages Health will be the poster child for these changes that will be a coming. Stay tuned.
We will see.
MA plan providers are still making lots of money, just not as much as they were. We'll find out soon, as the renewal period is coming up.
We like our UHC plan, so we're hoping we don't have to switch. But if we do, it is what it is.
Life goes on.
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