Medicare will pay 14 percent more for each member to private Medicare advantage plans the same care that would cost in the original Medicare. The draft final reform law brought these payments more in line with original Medicare. Medicare advantage plans has yet to provide coverage that is as good or better than original Medicare and Medicare Supplement plans are covering gaps in the original Medicare plans.
The bill prevents Medicare advantage plans charge more than Original Medicare for specific services. It also requires Medicare advantage plans to spend at least 85 percent of taxpayer funds on medical services for members, instead of using that money for marketing or maintenance as winnings. Members who see premium increases or benefit reductions in Medicare advantage plans can change to another plan or original Medicare.
The Congressional Budget Office (CBO) estimates that the combination of Medicare savings and increased revenue in the account more than pay for the coverage of the uninsured. As a result, the CBO says the bill will reduce the deficit in the first ten years and long term to make Medicare available to older people retiring in the coming years.