You can get the benefits of your healthcare through two sources, from the Government and from any private organisation. If the government is paying you for your health benefits, you are having an Original Medicare and if any private company is doing so, you are having a Medicare Advantage Plan.
In a Medicare Advantage Plan the government cuts a check per person per month to the private health insurer who coordinates and finances that person’s health care.
Follow the money
Where does the money seem to go is a sort of empirical analysis that may help us to see how much of it ripples through to profits of health insurers and there we see a quite significant number. The private insurer sees how generously the government reimburses the cost over the years.
So the cost is an important piece of evidence for policymakers to weigh as they’re thinking about whether they can cut the reimbursement to these plans or not.
insurer and recipients are directly depended on the cost
When the govt pays private health insurer more, many more new health insurers enter the market. On one hand, it is great for incumbent health insurers because they are paid more. On the other hand, that seem to be potentially not great because they are going to see more competition for Medicare recipients.
Additionally, we see more people enroll in an Aetna Medicare Supplement when the govt pays the plans more and the plans get more money so to become profitable to advertise and attract more Medicare Recipients
If the government pays less, lower no of services will be popping up and recipients may see lower quality in services
Know your policymakers
When the times come and policymakers are ready to implement some of those reimbursement cuts, the impact on their consumers may not be that negative.
Know about the firms who are about to enter Medicare advantage market or have just joined versus who are not entering. There are some insurers who seems to operate even if the reimbursement is not generous enough.
Some firm enters the market when the govt pays more but they may not be giving better facilities or better services than the incumbent firms.
Knowing the difference between incumbent firms and the firms that are on the verge of joining the market is important.
For more information related to Medicare Advantage Plan for 2019 visit their official website- www.medicare.gov