Who Pays for Medicare Ads?

[somarco]

The Centers for Medicare & Medicaid Services (CMS) is the principal source of funding for Advantage plans, paying insurance companies for each beneficiary's expected healthcare costs. Thus, the more people who enroll in Advantage plans, the more funds Medicare gives insurance companies offering these plans. In exchange, the Advantage plans, rather than Medicare, pay for enrollees' care. Critics have raised concerns that CMS steers enrollees to Advantage plans because of this.

Council Post: Why Are Medicare Advantage Plans So Heavily Advertised?

 

[Life Hawk]

... hand in the special interest cookie jar again?

 

[kgmom219]

Hmmm...do you think that AHIP collecting $200 (or whatever it is) from every agent to be certified to sell Advantage and/or Part D might also be a little screwy??? I just LOVE paying money to lobbying group that I disagree with. Its my favorite.

(And before anyone asks, yes, I actually get it for free due to production)

 

[Real_AMG]

It’s also the reason that the benefits have become better year after year. There is a clear correlation between the MAPD penetration in an area and the quality of the plans.

It’s also seemed to be that the Medicare and You book has had a relatively clear bias towards Advantage for at least the past 3 years.

 

[goillini52]

Hmmm...do you think that AHIP collecting $200 (or whatever it is) from every agent to be certified to sell Advantage and/or Part D might also be a little screwy??? I just LOVE paying money to lobbying group that I disagree with. Its my favorite.

(And before anyone asks, yes, I actually get it for free due to production)

About as screwy as Continuing Education. The company I use sends me the study guides and tests. They have nothing to do with what I sell. I've had CE for P&C, which I've never sold or been interested in.

 

[policywunk]

It’s also the reason that the benefits have become better year after year. There is a clear correlation between the MAPD penetration in an area and the quality of the plans.

It’s also seemed to be that the Medicare and You book has had a relatively clear bias towards Advantage for at least the past 3 years.

yes CMS is trying to stay solvent by discouraging the all you can eat health care buffet model of original medicare with medigap- go figure.

 

[kgmom219]

yes CMS is trying to stay solvent by discouraging the all you can eat health care buffet model of original medicare with medigap- go figure.

MAPD is now costing more than OM, so no clue where you got that idea

 

[Travis Price]

MAPD is now costing more than OM, so no clue where you got that idea

I don't know the numbers, maybe you do... but I think "costing" more and "spending" on are two different considerations.

Meaning, the money being spent may be more, but the actual cost may be lower because of the risk transfer.

Considering we're in the height of the boomer generations entering Medicare, the cost would likely be much higher if it was just OM. We spend more on MAPD because there are more people on it, however it costs less than everyone OM.

 

[Real_AMG]

Problem with OM is the claims are volatile. Gov isn’t good at being an insurance company. MAPD allows CMS to accurately estimate their expenses.

 

[kgmom219]

Here you go boys...in your spare time, read this.

https://www.kff.org/medicare/issue-...icares-solvency-and-affordability-challenges/