The private sector solution to health insurance
The “health” that drives private sector health insurance is the health of the corporate bottom line. As understand it, the “advantage” of Medicare Advantage was supposed to be lower costs for better benefits that only the free market could promise. How’s that working out?
“UnitedHealthcare said in its second quarter earnings call that it plans to drop Medicare Advantage plans that currently serve over 600,000 users, becoming the latest health insurer to announce a scaling back of this magnitude.
“We are seeing higher-than-expected medical cost increases, particularly in outpatient care,” Tim Noel, UnitedHealthcare CEO, said on the earnings call. “The American health system’s long-standing cost problem is accelerating.
“As enrollment in these plans, which are administered by private insurance companies, has ballooned, costs for providers have taken off. In response, Medicare Advantage (MA) plans have been making cuts to some benefits and even increasing deductibles.”
It turns out that people who have insurance sometimes use it. So the free market solution is cut and run.
“Nearly every Medicare Advantage insurer has either exited the business, such as Cigna, or is retrenching,” said Philip Moeller, a Medicare and Social Security expert. “UnitedHealthcare is the largest, and its reappraisal could have the biggest impact.”
Medicare Advantage plans are scaling back or disappearing
“UnitedHealthcare said in its second quarter earnings call that it plans to drop Medicare Advantage plans that currently serve over 600,000 users, becoming the latest health insurer to announce a scaling back of this magnitude.
“We are seeing higher-than-expected medical cost increases, particularly in outpatient care,” Tim Noel, UnitedHealthcare CEO, said on the earnings call. “The American health system’s long-standing cost problem is accelerating.
“As enrollment in these plans, which are administered by private insurance companies, has ballooned, costs for providers have taken off. In response, Medicare Advantage (MA) plans have been making cuts to some benefits and even increasing deductibles.”
It turns out that people who have insurance sometimes use it. So the free market solution is cut and run.
“Nearly every Medicare Advantage insurer has either exited the business, such as Cigna, or is retrenching,” said Philip Moeller, a Medicare and Social Security expert. “UnitedHealthcare is the largest, and its reappraisal could have the biggest impact.”
Medicare Advantage plans are scaling back or disappearing
Joel:
First; We do not use Medicare Advantage. From the get go, Medicare Advantage was expensive. We do not need the club memberships or other offers. Secondly, it you do not get the right plan, you may be disadvantaged in only being able to use certain healthcare providers. If you have issues, you are going to go to where you can be treated. Fortunately, I am also covered by the VA and I believe my wife is also.
With regard to United Healthcare and Medicare Supplemental through AARP? We dropped United Healthcare as it was more than twice as expensive as who we use now. We are talking a hundred plus dollars. With Supplemental, the coverage is the same. I asked the insurance guy whether, our prices will be the same next year. The answer? If not, we will shop your needs again (supplemental).
United Healthcare lost two of their Execs. Profitability is down also. But then? Should healthcare be a profit-making machine of sorts? Making money off of people’s illness? I think not. By the time the provision of healthcare changes to not for profit, I will be pushing up flowers.
Medicare for all does make sense. Still the issue of expensive Supplemental Healthcare insurance. Presently, for a family of 4, the cost could be~$500/month. The same issues of cost will still exist.
I am happy we did not go the Medicare Advantage route. It is blowing up like I thought it would.