Medicare’s Private Option Becoming Increasingly Popular


Medicare Advantage is a health care option that might be financially benefiting private insurers.

Medicare Advantage has been experiencing growing popularity amongst insured Americans over the traditional Medicare option. Individuals who opt for Medicare Advantage often cite the comparable prices along with the added benefits.

However, patients who are experiencing health crises are finding that they are not receiving their preferred medical treatment and different stipulations in Medicare Advantage is making it harder to receive that preferred care.

For example, those with pre-existing conditions cannot switch out of Medicare Advantage and into the traditional Medicare option. There have been cases were patients in Medicare Advantage have a preferred physician for a particular illness that is not covered by Medicare.

Additionally, some believe that faulty record keeping is resulting in private insurers overcharging Medicare. More specifically, in 2017, there was an estimated $2.7 billion in charges that were not associated with patient visits.

As Medicare Advantage becomes more popular, there is a consequent greater privatization of the Medicare system. Growing popularity can be tied to the fact that there is a cap on out of pocket expenses for patients. The traditional Medicare option does not have a spending cap for patients.

Read full story here.


Economics, Finance and Investing