Sebelius: Medicare Advantage premium costs to decline slightly in 2011

The Associated Press: "Seniors enrolled in popular private health insurance plans through Medicare will pay a little less on average next year, the Obama administration said Tuesday. The average monthly premium in so-called Medicare Advantage plans will dip to $35.69 in 2011, a 45-cent reduction from $36.14 this year, Medicare officials said." According to Health and Human Services Secretary Kathleen Sebelius, the decrease represents a savings of only about 1 percent, but that's a marked improvement over last year's premium hikes - which averaged 15%. The future of Advantage plans "has been a source of concern because the new health care law cuts payments to the private insurance companies that operate them." But 2011 rates are frozen and "significant reductions are still a couple of years away" (Alonso-Zaldivar, 9/21).

USA Today: "Virtually none of the 11 million seniors who choose private health insurance plans under Medicare will lose access to those plans next year, federal officials announced Tuesday, despite fears that strict payment rates under the new health care law would cause some insurers to drop out. ... 'Despite lots of predictions of gloom and doom, the Medicare Advantage program … is stronger than ever before,' Sebelius said. The government also announced that Medicare prescription drug premiums will remain relatively stable in 2011, and more insurance plans will eliminate a coverage gap included in a 2003 law to make the program affordable" (Wolf, 9/21).

The Hill's Healthwatch Blog: Administration officials said enrollment in "the controversial Medicare Advantage (MA) program" will increase in the year ahead. "White House health officials said the numbers indicate that — despite threats from conservatives and the insurance industry that the new healthcare reform law will cripple MA plans at the expense of seniors — both patients and taxpayers will benefit from the reforms" (Lillis, 9/21).

Modern Healthcare: "Some MA plans, however, will be exiting the market 'due primarily to 2008 legislation that tightened the quality standards for private fee-for-service plans,' CMS Administrator Don Berwick said during the conference call. As a result, about 2,300 Medicare Advantage beneficiaries will be left without a choice of MA plan. 'The insurance industry has been signaling to pull back from this market for some time. We will extend every resource to assist these affected beneficiaries transition to new coverage as seamlessly as possible,' Berwick said" (Lubell, 9/21).