Medicare Advantage-theatre of the absurdity

Medicare Advantage (MA) plans continue to come under scrutiny by Congress for the simple reason that CMS is paying private insurance companies more to administer medicare than they can do themselves under the current fee for service method. 

Since that is well documented, why are the plethora of medicare advantage plans asking providers like us to accept below medicare rates?  Shouldn't they be higher than medicare rates? 

As a way to repeal the further cuts to physician fee schedule as is currently in place, Congress is listing significant cuts to the MA plans as a source of funds.  No details to the amount of cuts.  Does anybody really believe that private insurance companies will stay in the MA game if they are paid significantly less?  Haven't we seen this same cycle for medicare replacement years ago?

Lastly, for many of us who have come to believe that CMS has a much lower cost to administer than private insurance, read this for a different analysis.

Thoughts,

Larry

Comments

[sean]

Larry,
I've recently signed up for 3 advantage plans at the MCR fee schedule which follow LCD's. Now I will say one company tried to pay me less than fee schedule. The convoluted legalese also made it sound like the typical 20% coinsurance would not have to be payed.
After emailing a comment to their national HQ that as far as I knew, it was illegal for me to waive the 20%, they sent a new contract with everything I asked for - on all their plans.
I'm sure what you speak of is true, but I have to claim ignorance regardiing reduced reimbursement rates.
That being said, I agree that these advantage plans are only an advantage for the insurance companies' bottom lines.