Tuesday, April 29, 2014

Medicare Update

Notes on Health Care Reform Act  Most of the cost-saving measures don’t affect basic Medicare benefits, but they may affect those enrolled in private Medicare Advantage plans.
  • Health care reform requires the government to pay private insurers less, therefore it is likely some will choose not to continue their plans. Others will curtail extra benefits such as reimbursement for gym membership or free eyeglasses.
  • The largest cuts will occur in 2015.
  • Satisfactory plans will be eligible for bonuses.
Medicare reimbursements to nursing homes will be cut by approximately $15 billion over the next decade.

A combination of the additional revenue and savings are estimated to extend the life of Medicare an additional 7 to 10 years from its current insolvency date of 2017.

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