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New State-by-State Data Show Impact on Seniors of Proposed Cuts to Medicare Advantage

MARCH 12, 2014

Seniors across the country will experience increased costs, reduced benefits, and fewer coverage options if new proposed cuts to Medicare Advantage payments take effect on April 7, according to new state-by-state data from Oliver Wyman.  The new data is a follow up to a recently released Oliver Wyman report which found that changes to Medicare Advantage payments recently proposed by CMS would result in a 5.9 percent cut to payments in 2015, causing benefit reductions and premium increases for seniors of an average $35-$75 per month, or $420-$900 for the year.

The following map shows how the proposed Medicare Advantage cuts would impact seniors across the country.

MAP 1

 

New state-by-state infographics that summarize the new data are available here.  The following chart lists the states in which seniors will be most impacted by the proposed cuts.

Chart1

If the new changes proposed by CMS for 2015 are implemented, the program would be hit by a double-digit cut over just a two-year period, according to the recent Oliver Wyman report. Cuts of this magnitude could result in a “high degree of disruption in the MA market,” including the “potential for plan exits, reductions in service areas, reduced benefits, provider network changes, and MA plan disenrollment,” the report stated.

This new state data follows a recent letter from a bipartisan group of 40 senators and a new letter from the 18 members of the U.S. House GOP Doctors Caucus urging the Medicare agency to protect seniors by maintaining current Medicare Advantage payment rates for 2015. A broad array of other organizations – representing employers, providers, consumers, and health care stakeholders – have also sent letters urging the agency to keep rates flat to protect seniors from further harm.

Final Medicare Advantage payment rates will be announced on April 7, 2014. Seniors will see the impact of any new payment cuts in late October 2014, when they begin enrolling in their 2015 Medicare Advantage coverage.

AHIP’s Coalition for Medicare Choices (CMC) recently launched an advocacy campaign urging CMS to protect seniors by maintaining current Medicare Advantage payment rates for 2015. The campaign includes television, digital, print, and display advertising in key markets around the country and in Washington, D.C. and grassroots mobilization of CMC’s 1.5 million Medicare Advantage beneficiaries. To learn more, visit www.MedicareChoices.org, and follow the coalition on Twitter (@ProtectMyMA) and Facebook.