February 27, 2014
Julia Lawless/Antonia Ferrier (202) 224-4515
Hatch: Study Shows Medicare Advantages Cuts will Hurt Seniors' Access to Quality Health Care
Report Found That Seniors Could See Reduced Benefits, Premium Increases Of Between $65 To $145 A Month Over Next Two Years
WASHINGTON - Finance Committee Ranking Member Orrin Hatch (R-Utah) today said a new study by Oliver Wyman confirmed that steep cuts to the popular Medicare Advantage (MA) program will hurt seniors’ access to quality and affordable health care. The report found that seniors who rely on this critical program may see their benefits reduced and premiums increased by between $65 to $145 a month over the next two years.
“The Obama Administration’s cuts to Medicare Advantage would hurt the quality health care that 15 million seniors receive from this popular program,” said Hatch. “Medicare Advantage has successfully increased choice and ensured greater access to quality and affordable care. But, as this report shows, seniors will pay the price of these cuts with many having to pay up to $145 a month more and others who could lose their plans, benefits and doctors all together. This isn’t right and has to be stopped. ”
Today’s study found:
• Medicare Advantage plans will see a 5.9 percent reduction in payment in 2015.
• Between 2014 and 2015, Medicare Advantage plans are facing 9.9 percent to 11.9 percent in reductions.
• These cuts mean seniors who rely on this critical program could see their benefits reduced and premiums increased between $65 to $145 a month over the next two years.
• Low income beneficiaries are disproportionately affected; 41 percent of MA enrollees have incomes below $20,000.