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


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