Obama Administration Erases Medicare Advantage Cuts

Planned cuts to the Medicare Advantage program have been erased by the Obama administration after Democrats in Congress voiced their opposition to the idea.

The proposal would have slashed government payments to insurance companies by 1.9 percent, which was expected to lead to either increased costs at the consumer level or cuts to the program. It was part of the Affordable Care Act, which was slated to cut $200 billion from Medicare Advantage over a 10-year period.

But in an about-face, the government will pay insurance companies .40 percent more starting next year, according to The Hill.

“The policies announced today will provide improved benefits in Medicare Advantage and the Prescription Drug Plans while keeping costs low for Medicare beneficiaries,” Centers for Medicaid and Medicare Services administrator Jonathan Blum said in The Hill story. “We believe that plans will continue their strong participation in the Medicare Advantage program in 2015 and beneficiaries will continue to have access to a wide array of high quality and affordable Medicare health and drug plans.”