During the 2012 election campaign, Democrats denied that ObamaCare made $716 billion in cuts to Medicare in order to provide funding toward $1.9 trillion in new entitlement spending over the next ten years.
In a typical Friday announcement, hoping no one would notice, the Obama administration revealed that Democrats had indeed been lying to the voters in an effort to win Senior’s votes. Funding for Medicare will be significantly cut, a move that one health insurance analyst said “would turn almost every plan in the industry unprofitable.”
Health insurance stocks tumbled following the announcement that a big chunk of the Medicare cuts would come from the popular Medicare Advantage program, a market-oriented system in which participants can choose coverage by a private company that contracts with Medicare to provide all Part A and Part B benefits.
Health care analyst Carl McDonald, said that “If implemented, these rates and the program changes CMS [Centers for Medicare and Medicaid Services] is suggesting would be enormously disruptive to Medicare Advantage, likely forcing a number of smaller plans out of the business and creating disarray for many seniors.”
According to Richard Foster, former chief actuary to the Medicare program, ObamaCare’s cuts to Medicare Advantage will likely force half of its current participants back into the old Medicare program, originated in 1965. It is estimated that this change will cost Medicare enrollees an average of $3,714 in 2017 alone.
America’s Health Insurance Plans’ (AHIP) president Karen Ignagni said, “Washington cannot tax and cut Medicare Advantage this much and not expect seniors to be harmed.”
Obama’s proposal is open to outside comments until March 1st, ahead of the final announcement of the cuts on April 1st. Good Luck!
