The excess over traditional Medicare fell from 13 percent in 2009 to 8.9 percent in 2010, amounting to a federal subsidy of $8.9 billion in 2009.
That means Medicare Advantage rates are beginning to shift toward levels mandated in the healthcare reform law, which mandates evening out Medicare Advantage and traditional Medicare payments in 2012.
To reach that goal, however, Medicare Advantage insurers said they would have to raise premiums or cut benefits such as vision care and gym memberships.
Read the Commonwealth Fund report on Medicare Advantage.
Read more coverage of Medicare Advantage:
– Sebelius: GOP Defunding Could Halt Medicare Advantage
– Error Rate Makes Medicare Advantage Ripe for New RAC Program
– Humana Shares Surge as Result of New Medicare Advantage Reimbursement Rates
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