According to the article “Medicare Advantage Premiums Expected to Rise 25% Next Year” by Jane Zhang for The Wall Street Journal online, premiums that seniors pay for Medicare Advantage are increasing. This is mostly because insurance companies are cancelling many plans that carry no premiums in response to new federal guidelines.
Humana Health Insurance Inc is setting up networks for its Private Fee for Service insurance plans and consolidating them next year. Humana will have 149 Private Fee for Service Plans, which is down from 173 in 2009. Humana made other changes such as the special needs plans which targets sicker people enrolled.
The number of Medicare Advantage plans will drop by approximately 40% in total. This is according to an Avalere analysis of Medicare data. Some consumers will see their plans change dramatically and others will see their plans simply go away. It’s important they are prepared for what changes may impact them directly.