Medicare Advantage Plans costing many Seniors more

A report issued   by the Government Accountability Office, Congress’ investigative bureau, revealed that out-of-pocket costs for Medicare Advantage beneficiaries are often much higher than for recipients of traditional Medicare, particularly for spending on nursing homes, home health care, and some hospital visits.

In 2007, 19 percent of seniors with Medicare Advantage plans were faced with higher overall costs for home health services, and 16 percent were subject to greater expenses for inpatient hospital care and overnight stays.

While 48 percent of Medicare Advantage beneficiaries participated in programs with annual limits on out-of-pocket costs, one of the benefits touted by private insurance companies, the report found a number of significant expenses that are not counted toward these limits by many insurers. 21 percent of such plans excluded spending on home health care, 23 percent did not include certain mental health services, and 29 percent would not count the cost of some cancer treatments.

After seeking care, many beneficiaries were surprised to learn they paid considerably more than their plans’ out-of-pocket maximums indicated they would be charged.

According to Congressional Quarterly, Democrats in Congress may try to amend the President’s Medicare “trigger” bill, which proposes means-testing for Part D and was introduced in Congress on Monday (H.R. 5480 in the House and S. 2662 in the Senate), to target Medicare Advantage plans. “These Medicare Advantage plans are ultimately costing seniors more and failing them in times of need,” said George J. Kourpias, President of the Alliance. “Private insurance companies are literally profiting at the expense of retirees.”