CMS reimbursement cuts to hurt Medicare Advantage retirees — 4 observations

If the government cuts Medicare funding, millions of Americans could experience more expensive premiums or decreased coverage, according to New Castle News.

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Here are four observations:

1. The CMS plans to lower reimbursements for payers offering Medicare Advantage plans on April 4, which could result in fewer benefits for retirees.

2. Some support the proposed cuts however, arguing the government pays more for Medicare Advantage beneficiaries than for other Medicare plans.

3. Opponents claim Americans with other Medicare plans pay higher premiums to subsidize the Advantage program.

4. The U.S. Chamber of Commerce reported the reimbursement decreases could result in a $250 premium increase in 2017.

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