The New Health Care Law and Medicare Advantage Plans

It is very important that everyone be aware of the changes that were made across the landscape of health insurance this year due to the “Affordable Care Act”.  This act was passed by Congress and signed by President Barack Obama to ensure that you are given a fair shake when it comes to health insurance.  This information doesn’t just apply to the private insurance companies, but to Medicare as well.  Due to this, there has been an effect on Medicare Advantage Plans.
The problem with Medicare Advantage Plans is that insurance companies have used them to increase profits by charging a lot of administrative costs.  These costs make it hard for Medicare beneficiaries to keep up with the game and make it so that all Medicare subscribers must pay fees to stay afloat.  Medicare Advantage Plans charge Medicare an average of $1,000 more per person than Original Medicare plans.
You will still receive guaranteed Medicare benefits after these changes take place, but Medicare will stop the overpayments to insurance companies.  By 2014 this law will make it so that 85% of every dollar from these plans is spent on health care expenses only.  This will reduce the amount that the subscribers pay and increase the amount that the insurance company must come up with.

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