Medicare Advantage (Medicare Part C, MA) is a capitated program for providing Medicare benefits in the United States. Under Part C, Medicare pays a sponsor a fixed payment. The sponsor then pays for the health care expenses of enrollees. Sponsors are allowed to vary the benefits from those provided by Medicare's Parts A and B as long as they provide the actuarial equivalent of those programs.[1]: 61 The sponsors vary from primarily integrated health delivery systems to unions to other types of non profit charities to insurance companies. The largest sponsor is a hybrid: the non profit charity AARP using UnitedHealth.
Part C plans are required to offer coverage that meets or exceeds the standards set by Medicare Parts A and B, but they do not have to cover every benefit in the same way (actuarial equivalence is required). The major advantage of a public Part C Medicare Advantage plan is that each features an out of pocket annual spend limit of the beneficiary's choosing, typically ranging from $1500 to about $8000 in 2023. The lower the limit the higher the premium as with insurance of all types. Many Part C plans with a high limit have no premium (but the Part C enrollee still has to pay a Part B premium if otherwise required). Original Medicare Parts A and B do not include such out of pocket spend limit protection.
Plans must be approved by the Centers for Medicare and Medicaid Services (CMS). If a MA plan changes some benefits, the savings must be passed along to consumers by lowering co-payments for doctor visits (or any other plus or minus aggregation approved by CMS).[2] Coverage must include inpatient hospital (Part A) and outpatient (Part B) services. Typically, the plan also includes prescription drug (Part D) coverage.[3] Many plans also offer additional benefits, such as hearing or dental coverage or vision services not covered by Part B of Medicare. Such plans typically require a higher premium.[1]: 62
Those who do not enroll in a Part C plan receive coverage for Part A and Part B services. Many purchase private supplemental coverage (Medigap)[4] to cover the large co-pays, co-insurance and deductibles in Original Medicare Parts A and B, and enroll separately in Part D for coverage of prescription drugs.[1]: 8 Public Part C Medicare Advantage plans also include nominal co-pays and co-insurance but there are no deductibles
Most MA plans are managed care plans (e.g., PPOs or HMOs) with limited provider networks. About 40% of Medicare Advantage enrollees with prescription drug benefits pay an additional premium.[4]
Original Medicare and Medicare Advantage pay healthcare providers differently. Original Medicare typically reimburses healthcare providers with a fee for each service.[5] This fee is often calculated with a standard formula (for example, the prospective payment system for hospital services). Providers either accept Medicare's reimbursement rates or opt out of the program.[5] Public Medicare Advantage plans negotiate payment rates and form networks with healthcare providers, similar to private health insurance plans that almost all Americans not of Medicare age use.[6][7]
As of 2023, about 50% of Medicare beneficiaries were members of Medicare Advantage plans.[8] Nearly all Medicare beneficiaries[9] have access to at least one Medicare Advantage plan; on average 39[10] plans per county were available. By design, the cost to the trust funds of Medicare Advantage plan members and those beneficiaries receiving services on a fee basis should be the same by county. However the convoluted framework/bid/rebate process built into the 2003 and 2010 revisions to the 1997 Medicare Advantage law means this one-one relationship will always be out of synch. On average, over the 25 years of the program comparable people on both programs (that is, for example, people not on Medicaid or Federal retirees or people still working or in the VA system or in union plans) have costs the Trust Funds equal amounts .[11]
Other plan types, such as 1876 Cost plans, are available in some areas. Cost plans are not Medicare Advantage plans and are not capitated. Instead, beneficiaries keep their Original Medicare benefits while the plan sponsor administers their Part A and Part B benefits.
Some MA plans cover both Medicare and Medicaid services for people who are eligible for both.[12] To be eligible both Medicare and Medicaid coverage, often referred to as "dual eligibility," individuals must meet specific eligibility criteria for each program separately. Medicare is typically available to those aged 65 and older, certain individuals with disabilities, and those with end-stage renal disease or ALS.[13] Medicaid eligibility is income and asset-based, varying by state, and is generally available to low-income individuals.[14]
Value-based Insurance DesignEdit
The CMS Innovation Center's Medicare Advantage Value-Based Insurance Design (VBID) model tests the effect of offering customized benefits that are designed to better manage their disease(s) and address social needs, including food insecurity and social isolation. The VBID Hospice Benefit Component provides access to palliative/hospice services.[12]
UsageEdit
The number of people using public Part C of Medicare grew from almost zero since 1998 to 26.5 million in 2021. The top-25 Medicare Advantage insurers enroll a combined 21.6 million people, or 87 percent of the total. Nine plans saw growth over 10% in 2021.[15]
In 2022, 295 plans (up from 256 in 2021) covered all Medicare services, plus Medicaid-covered behavioral health treatment or long term services and support.[12]
In 2022, 1000 MA plans were projected to enroll 3.7 million people in VBID. The hospice benefit will be offered by 115 Medicare Advantage plans in 22 states and territories.[12]
CriticismsEdit
In 2019, Medicare Advantage Organizations denied 13% of prior authorization requests that would have been accepted if the beneficiaries were in original Medicare.[16] In 2019 alone, Medicare Advantage plans cost tax-payers $9 billion more dollars than if beneficiaries were in original Medicare.[17] This is due to a financial incentive for physicians associated with these plans to manipulate diagnosis codes.[17] In addition, while original Medicare allows for beneficiaries to visit any provider that accepts Medicare, Medicare Advantage plans restrict the number of providers and hospitals that beneficiaries can visit.[18]
As a result of labeling beneficiaries with more severe diagnoses as a way to generate profit, many companies that participate in MA plans such as UnitedHealth, Humana, Elevance, and Kaiser have or are facing federal fraud lawsuits from the Department of Justice.[19]
ReferencesEdit
^ abc"Medicare & You: 2022" (PDF). Centers for Medicare and Medicaid Services. Retrieved September 8, 2022.
^"What is Medicare Part C?". hhs.gov. June 7, 2015.
^. Kaiser Family Foundation. June 6, 2019. Archived from the original on February 22, 2020. Retrieved January 18, 2020. Medicare Advantage plans are generally required to offer at least one plan that covers the Part D drug benefit. The typical reasons for not choosing a Part C plan with Part D integrated is if a beneficiary receives drug coverage from the VA or a former employer. In 2023, about 90% of Medicare Advantage plans offer prescription drug coverage, while most Medicare Advantage enrollees (88%) select this benefit.
^ abFreed, Meredith; Damico, Anthony; Neuman, Tricia (13 January 2021). . KFF. Kaiser Family Foundation. Archived from the original on June 27, 2021. Retrieved 20 June 2021.
^ ab"The Prices That Commercial Health Insurers and Medicare Pay for Hospitals' and Physicians' Services". CBO. 2022-01-20. Retrieved 2022-10-12.
^Trish, Erin; Ginsburg, Paul (2017-09-05). "Physician Reimbursement in Medicare Advantage Compared With Traditional Medicare and Commercial Health Insurance". JAMA Internal Medicine. 177 (9): 1287–1295. doi:10.1001/jamainternmed.2017.2679. PMC5710575. PMID 28692718.
^Neuman P, Jacobson GA (November 29, 2018). "Medicare Advantage Checkup". The New England Journal of Medicine. 379 (22): 2164. doi:10.1056/NEJMhpr1804089. PMID 30428276. S2CID 53424941.
^Freed, Meredith; Damico, Anthony (2022-12-10). "Medicare Advantage in 2022 Enrollment Update and Key Trends". KFF. Retrieved 2022-10-11.
^Spencer, Mark (2022-12-10). "What is the difference between Original Medicare and Medicare Advantage plans". Medicare Help. Retrieved 2022-10-12.
^Freed, Meredith; Damico, Anthony (2022-11-02). "Medicare Advantage 2022 Spotlight: First Look". KFF. Retrieved 2021-10-02.
^Biles, Brian; Guterman, Steve; Adrion, Emily (September 2008). . Commonwealth Fund. Archived from the original on April 1, 2012.
^ abcd"CMS Releases 2022 Premiums and Cost-Sharing Information for Medicare Advantage and Prescription Drug Plans | CMS". cms.gov. Retrieved 2022-10-19.
^"Get started with Medicare". medicare.gov. Retrieved 2023-09-14.
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Medicare – Alliance for Health Reform The nonpartisan, nonprofit Alliance for Health Reform offers information about health reform, in a number of formats, to elected officials and their staffs, journalists, policy analysts and advocates.
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October 21, 2023
medicare, advantage, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, septem. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Medicare Advantage news newspapers books scholar JSTOR September 2019 Learn how and when to remove this template message Medicare Advantage Medicare Part C MA is a capitated program for providing Medicare benefits in the United States Under Part C Medicare pays a sponsor a fixed payment The sponsor then pays for the health care expenses of enrollees Sponsors are allowed to vary the benefits from those provided by Medicare s Parts A and B as long as they provide the actuarial equivalent of those programs 1 61 The sponsors vary from primarily integrated health delivery systems to unions to other types of non profit charities to insurance companies The largest sponsor is a hybrid the non profit charity AARP using UnitedHealth Part C plans are required to offer coverage that meets or exceeds the standards set by Medicare Parts A and B but they do not have to cover every benefit in the same way actuarial equivalence is required The major advantage of a public Part C Medicare Advantage plan is that each features an out of pocket annual spend limit of the beneficiary s choosing typically ranging from 1500 to about 8000 in 2023 The lower the limit the higher the premium as with insurance of all types Many Part C plans with a high limit have no premium but the Part C enrollee still has to pay a Part B premium if otherwise required Original Medicare Parts A and B do not include such out of pocket spend limit protection Plans must be approved by the Centers for Medicare and Medicaid Services CMS If a MA plan changes some benefits the savings must be passed along to consumers by lowering co payments for doctor visits or any other plus or minus aggregation approved by CMS 2 Coverage must include inpatient hospital Part A and outpatient Part B services Typically the plan also includes prescription drug Part D coverage 3 Many plans also offer additional benefits such as hearing or dental coverage or vision services not covered by Part B of Medicare Such plans typically require a higher premium 1 62 Those who do not enroll in a Part C plan receive coverage for Part A and Part B services Many purchase private supplemental coverage Medigap 4 to cover the large co pays co insurance and deductibles in Original Medicare Parts A and B and enroll separately in Part D for coverage of prescription drugs 1 8 Public Part C Medicare Advantage plans also include nominal co pays and co insurance but there are no deductiblesMost MA plans are managed care plans e g PPOs or HMOs with limited provider networks About 40 of Medicare Advantage enrollees with prescription drug benefits pay an additional premium 4 Original Medicare and Medicare Advantage pay healthcare providers differently Original Medicare typically reimburses healthcare providers with a fee for each service 5 This fee is often calculated with a standard formula for example the prospective payment system for hospital services Providers either accept Medicare s reimbursement rates or opt out of the program 5 Public Medicare Advantage plans negotiate payment rates and form networks with healthcare providers similar to private health insurance plans that almost all Americans not of Medicare age use 6 7 As of 2023 about 50 of Medicare beneficiaries were members of Medicare Advantage plans 8 Nearly all Medicare beneficiaries 9 have access to at least one Medicare Advantage plan on average 39 10 plans per county were available By design the cost to the trust funds of Medicare Advantage plan members and those beneficiaries receiving services on a fee basis should be the same by county However the convoluted framework bid rebate process built into the 2003 and 2010 revisions to the 1997 Medicare Advantage law means this one one relationship will always be out of synch On average over the 25 years of the program comparable people on both programs that is for example people not on Medicaid or Federal retirees or people still working or in the VA system or in union plans have costs the Trust Funds equal amounts 11 Other plan types such as 1876 Cost plans are available in some areas Cost plans are not Medicare Advantage plans and are not capitated Instead beneficiaries keep their Original Medicare benefits while the plan sponsor administers their Part A and Part B benefits Contents 1 Medicare Medicaid 2 Value based Insurance Design 3 Usage 4 Criticisms 5 References 6 External links 6 1 Government links current 6 2 Private linksMedicare Medicaid EditSome MA plans cover both Medicare and Medicaid services for people who are eligible for both 12 To be eligible both Medicare and Medicaid coverage often referred to as dual eligibility individuals must meet specific eligibility criteria for each program separately Medicare is typically available to those aged 65 and older certain individuals with disabilities and those with end stage renal disease or ALS 13 Medicaid eligibility is income and asset based varying by state and is generally available to low income individuals 14 Value based Insurance Design EditThe CMS Innovation Center s Medicare Advantage Value Based Insurance Design VBID model tests the effect of offering customized benefits that are designed to better manage their disease s and address social needs including food insecurity and social isolation The VBID Hospice Benefit Component provides access to palliative hospice services 12 Usage EditThe number of people using public Part C of Medicare grew from almost zero since 1998 to 26 5 million in 2021 The top 25 Medicare Advantage insurers enroll a combined 21 6 million people or 87 percent of the total Nine plans saw growth over 10 in 2021 15 In 2022 295 plans up from 256 in 2021 covered all Medicare services plus Medicaid covered behavioral health treatment or long term services and support 12 In 2022 1000 MA plans were projected to enroll 3 7 million people in VBID The hospice benefit will be offered by 115 Medicare Advantage plans in 22 states and territories 12 Criticisms EditIn 2019 Medicare Advantage Organizations denied 13 of prior authorization requests that would have been accepted if the beneficiaries were in original Medicare 16 In 2019 alone Medicare Advantage plans cost tax payers 9 billion more dollars than if beneficiaries were in original Medicare 17 This is due to a financial incentive for physicians associated with these plans to manipulate diagnosis codes 17 In addition while original Medicare allows for beneficiaries to visit any provider that accepts Medicare Medicare Advantage plans restrict the number of providers and hospitals that beneficiaries can visit 18 As a result of labeling beneficiaries with more severe diagnoses as a way to generate profit many companies that participate in MA plans such as UnitedHealth Humana Elevance and Kaiser have or are facing federal fraud lawsuits from the Department of Justice 19 References Edit a b c Medicare amp You 2022 PDF Centers for Medicare and Medicaid Services Retrieved September 8 2022 What is Medicare Part C hhs gov June 7 2015 Fact Sheet Medicare Advantage Kaiser Family Foundation June 6 2019 Archived from the original on February 22 2020 Retrieved January 18 2020 Medicare Advantage plans are generally required to offer at least one plan that covers the Part D drug benefit The typical reasons for not choosing a Part C plan with Part D integrated is if a beneficiary receives drug coverage from the VA or a former employer In 2023 about 90 of Medicare Advantage plans offer prescription drug coverage while most Medicare Advantage enrollees 88 select this benefit a b Freed Meredith Damico Anthony Neuman Tricia 13 January 2021 A Dozen Facts About Medicare Advantage in 2020 KFF Kaiser Family Foundation Archived from the original on June 27 2021 Retrieved 20 June 2021 a b The Prices That Commercial Health Insurers and Medicare Pay for Hospitals and Physicians Services CBO 2022 01 20 Retrieved 2022 10 12 Trish Erin Ginsburg Paul 2017 09 05 Physician Reimbursement in Medicare Advantage Compared With Traditional Medicare and Commercial Health Insurance JAMA Internal Medicine 177 9 1287 1295 doi 10 1001 jamainternmed 2017 2679 PMC 5710575 PMID 28692718 Neuman P Jacobson GA November 29 2018 Medicare Advantage Checkup The New England Journal of Medicine 379 22 2164 doi 10 1056 NEJMhpr1804089 PMID 30428276 S2CID 53424941 Freed Meredith Damico Anthony 2022 12 10 Medicare Advantage in 2022 Enrollment Update and Key Trends KFF Retrieved 2022 10 11 Spencer Mark 2022 12 10 What is the difference between Original Medicare and Medicare Advantage plans Medicare Help Retrieved 2022 10 12 Freed Meredith Damico Anthony 2022 11 02 Medicare Advantage 2022 Spotlight First Look KFF Retrieved 2021 10 02 Biles Brian Guterman Steve Adrion Emily September 2008 The Continuing Cost of Privatization Extra Payments to Medicare Advantage Commonwealth Fund Archived from the original on April 1 2012 a b c d CMS Releases 2022 Premiums and Cost Sharing Information for Medicare Advantage and Prescription Drug Plans CMS cms gov Retrieved 2022 10 19 Get started with Medicare medicare gov Retrieved 2023 09 14 Medicaid Eligibility Medicaid medicaid gov Retrieved 2023 09 14 Medicare Advantage statistics 2021 from industry Association MedicareSupp org Retrieved 2021 05 25 Grimm Christi April 2022 Some Medicare Advantage Organization Denials of Prior Authorization Requests Raise Concerns About Beneficiary Access to Medically Necessary Care PDF a b The Medicare Advantage program Status report PDF March 2021 Medicare Advantage How Robust Are Plans Physician Networks October 2017 The Cash Monster Was Insatiable How Insurers Exploited Medicare for Billions October 8 2022 External links EditGovernment links current Edit CMS official web site Legal Issues Relating to the Secretary s Authority to Set Payment Rates Under the Medicare Advantage Program Congressional Research Service Medicare gov the official website for people with Medicare As codified in 42 U S C chapter 7 of the United States Code from the LII As codified in 42 U S C chapter 7 of the United States Code from the US House of RepresentativesPrivate links Edit Medicare amp Medicaid Resources Medicare information site Kaiser Family Foundation Wide range of free information about the Medicare program and other U S health issues including state level data on health care spending and utilization including MedicareMedicare Advantage in 2022 Enrollment Update and Key Trends Medicare Alliance for Health Reform The nonpartisan nonprofit Alliance for Health Reform offers information about health reform in a number of formats to elected officials and their staffs journalists policy analysts and advocates Social Security and Disability News Resource Center How Stuff Works Medicare Medicare Policy Center Retrieved from https en wikipedia org w index php title Medicare Advantage amp oldid 1180692528, wikipedia, wiki, book, books, library,
