National Association of Insurance and Financial Advisors

Medicare Advantage (ACA)

Beginning in 2011, the Patient Protection and Affordable Care Act (ACA) froze Medicare Advantage payment rates, which the law began reducing by a total of $202 billion in 2012 through 2019. Moreover, the Centers for Medicaid and Medicare Services (CMS) recently reversed what was set to be an additional 2.3 percent cut to MA for 2014, announcing instead that it would increase payments by 3.3 percent for that same period.

The wellbeing of MA is still under significant threat from the ACA however. The Congressional Budget Office predicts that 4.8 million seniors will lose their MA coverage because of the ACA. Policymakers should look at ways of offsetting or repealing MA cuts to prevent significant damage to this popular, high-quality of care Medicare option that that provides seniors with greater choice and benefits.