How Will The New Health Reform Affect Medicare?

Current Status

As of now, Americans currently participating in the traditional program will be less affected by the new health reform. How recipients receive medical care won’t change much either, so you can stop worrying about having to choose an insurance company or wondering if you have to opt in or out of a public coverage plan.

House Review

The new health reform bill is being reviewed by the House and the documents also include how the new health reform bill would affect recipients. The document section under review that may receive the highest amount of change is the Medicare Advantage Program. The Advantage Program is optional to recipients and provides medical services through the private sectors. It is also the most expensive Medicare program, making it a target in today’s economics. The purpose of the new health reform bill is to reduce costs while still providing traditional services.

Advantage Program

The Advantage Program is managed by private insurance companies unlike the traditional Medicare, which is managed by the government. Advantage includes traditional services, plus prescription drugs and extra services like dental. Enrolled members may see the extras reduced with an increase for out of pocket spending, while traditional benefits remain in place.


The Advantage Program accounts for only 1/5 of the Medicare recipients, so the private sector services may feel the greatest affects from the new health reform bill. Overall, Advantage represents a smaller portion of Medicare recipients who may be affected by the changes in the new health reform bill. The remaining 4/5 of American recipients may see fewer changes in their existing benefits due to the new health reform bill. Two of those changes are the proposed upgrades pertaining to health prevention information and increased limits for medical prescriptions.

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