Will Cuts To Medicare Advantage Hurt Beneficiaries?

The legislation currently under consideration will slash $540 billion dollars in Medicare funds over the next ten years. The cuts would decrease the government disbursements for providers, such as hospitals and home health agencies.

Will there be cuts to Medicare Advantage?

Medicare Advantage is supplemental insurance. Nearly 11 million people are enrolled in Medicare Advantage plans. A proposed $120 billion cut to Medicare Advantage is part of the budget reductions.

How will the cuts to affect Beneficiaries?

Some experts maintain that the cuts to Medicare Advantage will not decrease seniors benefits; that they will affect insurance companies more than beneficiaries. It has also been pointed out that Medicare as it was traditionally written, will not change and that hospitals and home health agencies, can absorb the cuts without decreasing or eliminating services. Others argue that slashing 540 billion dollars from Medicare is certain to affect the quality of care for the program’s nearly 11 million members, and that the preponderance of the burden will fall upon low-income individuals.


Cuts To Medicare Advantage will hurt many Medical beneficiaries. Millions of seniors signed up for Medicare Advantage in good faith. Fully one-fourth would be adversely affected by the proposed legislation. The plan would cut Medicare payments to doctors, and to hospitals and other institutions that provide care under the Medicare Advantage Plan. The insurance companies will find it necessary to charge higher monthly rates, raise copayments and deductibles, and eliminate some items not paid by Medical, such as vision and dental care services. These cuts will mean that many of those participating in MA plans will be financially injured. Over one fourth of seniors will be affected. The proposed cuts provide heavy motivation for hap-hazard care.

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