The Real Advantage of Medicare Part C Advantage Plans

The Real “Advantage” of Medicare Part C Advantage Plans

In the late 1990’s the United States government had a wonderful idea to begin to privatize Medicare. The Balanced Budget Act of 1997 created new health care options for Medicare recipients by way of Medicare + Choice. This was later renamed Medicare Advantage. This Medicare + Choice or Medicare Advantage was designed to give senior citizens more options on how to receive their hard earned Medicare benefits. Having the right to choose is the American way and this bill was pushed through congress on that idea. This gave senior citizens the right to choose Part C Advantage private insurance and opt out of traditional Medicare part A and B. The privatization of Social Security benefits has led to a plethora of problems including: greater cost to the U.S. government, limited healthcare options for Part C Advantage recipients, and unscrupulous Part C Advantage companies.

The cost of Medicare is on the precipice of bankrupting the social security system of the United States. The United States spends 599 billion or 20% of federal spending on Medicare, this number will increase as the baby boom generation reaches retirement. The hope that privatizing Medicare Part A and B would reduce Social Security Spending has been proven incorrect. In actuality it costs the Social Security system more for an individual with Medicare Advantage than traditional Medicare Part A and B. According to a study in September 2010 it costs the U.S. government $1,140 more per enrollee than it would cost for the same number of patients under traditional Medicare. This is the type of spending that must be curtailed to save the Medicare system.

Part C Advantage Plans are organized very similar to the major medical health insurance most U.S. citizens have had their entire life. Advantage plans have coverage areas, network doctors, and coverage limits. These healthcare limitations are something most working Americans are expecting and deal with without any complications. Senior citizens are opting out of traditional Medicare, perhaps the best health care in the world, for private insurance that has significant limitations. Most Medicare Advantage recipients do not realize that they have been taken off of Medicare Part A and B until they become ill and cannot see the doctor or receive the treatment they need. The Medicare advantage plans do not offer senior citizens a better form of health care.

The Medicare part C Advantage program is government funding of private insurance for individuals that opt out of Medicare Part A and B. These private insurance companies are in business to make money just like every other company. To do this they must keep costs down and bring in as much revenue as possible. This does not bode well for the Part C recipients, they find themselves fighting private insurance for benefits and having to cut through an endless supply of red tape. Medicare Advantage insurance companies also hire very aggressive sales force to sell their wonderful program to senior citizens who need the protection of traditions Medicare now more than ever.

The balanced budget act of 1997 attempted to enact a privatization of Medicare that has been a complete failure. In reality: it cost the social security system more to administer, provided a lower class of benefits to Medicare recipients, and caused corruption in the Medicare system. Medicare Part A and B is the best healthcare program in the world and should be recognized as such.