Devoted to the Insurance industry and all thing related

An article in the National Underwriter talks about a report from the America’s Health Insurance Plans (AHIP) in regards to the Medicare Advantage program.  AHIP claims that, “The Medicare Advantage program does more to help low-income seniors than it does to help higher-income seniors.”    

This report is in anticipation of the upcoming hearing by the Senate Finance Committee on the Medicare program.  According to the Medicare website the Advantage plan includes Medicare Health Maintenance Organization (HMOs), Preferred Provider Organizations (PPO), Private Fee-for-Service Plans and Medicare Special Needs Plans.  

The AHIP report states:

“Only 13% of all noninstitutionalized Medicare beneficiaries joined Medicare Advantage plans in 2004, the most recent year for which data is publicly available, but 49% of the beneficiaries with annual incomes under $20,000 were in Medicare Advantage plans, AHIP says.

In the $10,000-$20,000 income bracket, 33% of beneficiaries were in Medicare Advantage plans, and 21% had health coverage from current or former employers. Another 19% had Medicare supplement insurance, and 19% had no supplemental coverage.”

I’m interested to hear about your perspective on this issue.  Do you agree with the AHIP report or do you think the opposite is true?