Medicare Advantage – whose advantage is it? Midlands Voices: Medicare Advantage – whose advantage is it?
MIDLANDS VOICES
You turn on your TV and hear a litany of monotonous, mind-numbing exaggerations. You go to your mailbox and find it stuffed full of slick marketing materials.
Of course, I'm talking about Medicare Advantage. Just call our toll-free number.
In 1997, after intense lobbying by the private insurance industry,
Since then, Advantage plans have been marketed non-stop. They've become a gold mine for private insurers, but a multi-billion dollar drain on the
Let's start with some basics. Traditional Medicare runs an overhead of 2%. Advantage plans combined overhead and profit checks in at an average 12.5%. That difference represents taxpayer dollars that don't pay for health care, but rather TV ads, marketing and corporate bottom lines. But how can Advantage plans offer all of those "extras" like gym memberships, etc., and still be so profitable? Through the twin processes of "upcoding" and "care management" (which actually means referral and treatment denials, according to some). Both are endemic in the Advantage world.
Upcoding works like this. The money the
Estimates of how much all of this costs Medicare run upwards to
But upcoding is only part of the story. Because Advantage plans are basically managed care products (unlike traditional Medicare), patients are only allowed to receive care through insurance-crafted networks - and pay dearly if they go out of network.
Testing, treatments, referrals and even some admissions must be approved by the insurer first, resulting in delays in care and often outright denials. A recent audit found that 14% of these denials were for treatments that Medicare was supposed to cover. And in each instance, the care was ordered by a physician. It was the Advantage insurer who denied it.
According to an investigation by the
This was never the intention of the Medicare program. And if it continues, Medicare's future is in serious jeopardy. Through clever (and expensive) marketing, nearly half of all Medicare recipients have signed up for Advantage plans. That doesn't change the fact that these plans are bleeding the trust fund dry.
According to news sources, some in
If


Florida lawmakers convene special session to fix state's property insurance crisis
Management Transaction Disclosure
Advisor News
- Investors aren’t waiting out uncertainty
- Transamerica and Advo(k)ate Advisors launch pooled employer plan
- ‘I wish I’d met him sooner:’ Karlan Tucker remembered for integrity, faith
- Why women must be more engaged in investing
- SEC moves to simplify electronic delivery of investor communications
More Advisor NewsAnnuity News
- Delaware Life Launches a New Bonus Fixed Index Annuity Built for Growth, Protection, and Flexibility
- LIMRA: Annuity sales set new quarterly record with $123.9B in Q2
- CANNEX names Gary Baker as its new CEO
- Corebridge adds options to its Power Series of indexed annuities
- Corebridge Financial enhances The Power Series of Index Annuities
More Annuity NewsHealth/Employee Benefits News
- State Health Plan brings back Blue Cross NC
- ‘Worst nightmare.’ Medicare patients on alert as deadline nears for UHealth, United
- Employers are considering ICHRAs, but barriers to adoption remain
- AI belongs on your organizational chart, and that’s a good thing
- New dashboard tracks Kansas Affordable Care Act enrollment by legislative district, county
More Health/Employee Benefits NewsLife Insurance News
- Delaware Life Launches a New Bonus Fixed Index Annuity Built for Growth, Protection, and Flexibility
- LIMRA predicts strong life and annuity sales for the rest of 2026
- Best’s Market Segment Report: AM Best Maintains Stable Outlook on Vietnam’s Non-Life Insurance Segment
- AM Best Comments on Credit Ratings of Horace Mann Educators Corporation and Its Subsidiaries Following Announced Transaction with Medical Mutual of Ohio
- AM Best Affirms Credit Ratings of Hanwha General Insurance Company Limited
More Life Insurance News