Lee Durrwachter, a retired chemical engineer from Grand Marais, Mich., said his premiums more than doubled this year, even though he switched plans to try to save money. “It doesn’t bode well,’’ Durrwachter said. “It’s unaffordable.’’
The Medicare findings are bad news for President Obama and his health care overhaul, which is bogged down in Congress. That is because the higher Medicare Advantage premiums for 2010 followed a cut in government payments to the private plans last year. And the Democratic bills pending in Congress call for even more cuts, which are expected to force many seniors to drop out of what has been a rapidly growing alternative to traditional Medicare.
Republicans have seized on the Medicare Advantage cuts in their campaign to derail the health care bills, and seniors are listening. Polls indicate that seniors are more skeptical of the legislation than the public as a whole, even though Democrats would also reinforce original Medicare by improving preventive benefits and narrowing the prescription coverage gap.
At a town hall meeting yesterday outside Las Vegas, Obama said the Medicare Advantage plans are getting a “sweet deal’’ from the government - overpayments averaging 13 percent. “All we’ve been saying is, let’s make sure that there’s a competitive bidding process, and that we are getting the absolute best bargain,’’ the president said.
The study found that, for consumers, Medicare Advantage is becoming less of a bargain. The average premium for 2010 is $39.61, representing an increase of nearly $5 a month from the previous year. That compares with a rise of less than $1.75 a month in 2009. The averages are adjusted based on enrollment levels in particular plans that offer medical and prescription coverage, reflecting the choices that seniors make.
Medicare Advantage plans can also require out-of-pocket payments.
