One of the biggest selling points of a Medicare Advantage plan are additional benefits like dental care, vision, and Part B givebacks- all of which make them a popular option, especially for those on a fixed income. Unfortunately, we may see big cutbacks on these benefits next year due to increased plan spending and decreased federal funding.

Over half of Medicare beneficiaries are enrolled in Medicare Advantage plans this year. So statistically, Advantage plans are the more popular plan choice, although many have strong opinions about them. New enrollments far surpassed initial projections, but enrollees also utilized more hospital and medical services than expected, leaving insurance carriers scrambling to recover financially.

Moreover, this is the second year in a row that insurers are receiving less federal funding in an effort by the Centers for Medicare and Medicaid Services (CMS) to cut back on Medicare spending. Humana and CVS both admitted that these monetary hits would take a couple years to recover from. Both companies are heavy hitters in the insurance industry, so we don’t expect them to go belly up anytime soon, but we do expect to see significant plan changes across the board from all carriers.

Medicare Advantage plans are required to pay at least as well as Original Medicare for hospital and medical services. However, most plans offer additional benefits such as over-the-counter allowances and gym memberships to entice new enrollees. These benefits are extras, and not required by Medicare to be included. The problem is that when carriers are looking to recoup costs, these “extras” are usually the first thing to get nixed.

If you have a Medicare Advantage plan, don’t panic yet. Wait until you receive your Annual Notice of Change (ANOC) which is usually mailed out in September each year. This will outline any expected plan changes for the following year. If you are unsatisfied or want to look at new options, use the Annual Enrollment Period (AEP) to make plan changes.

Keep in mind that new plan information becomes available in early October, and you have from October 15^th to December 7^th to change your plan. Our Medicare advisors can compare your current plan with the countless options available in your area. And if you like what you hear, we can even help you enroll into your new plan over the phone or online, no paperwork required. At AMAC’s Medicare Advisory Service, our goal is to help make Medicare make sense!

For help with Medicare plans – or any questions you may have about Medicare – contact AMAC’s Medicare Advisory Service at 1-855-611-4856 or request a quote below!