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In reply to the discussion: Medicare Advantage Plans Often Deny Needed Care, Federal Report Finds [View all]moose65
(3,437 posts)Theres too much confusion because they have the word Medicare in the name. People think these are original Medicare plans. A cousin of mine posted something on Facebook about all those Medicare commercials. I jumped right in and explained that those are NOT commercials for Medicare - they are commercials for private insurance plans.
Medicare Advantage providers have been over paid for years. The Affordable Care Act tried to reduce payments to them - remember when Romney went around claiming that the ACA took billions from Medicare to pay for Obamacare? Thats what he was talking about. Truth is, Medicare pays a set amount per person to those in Medicare Advantage plans, and it goes to those private insurance companies. If they have to pay out less in claims, then they get to keep the rest as profit. Thats why they try to draw in healthier people, so they can make money off them.
Those plans ought to be illegal.