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Let It Burn!
Trump Needs To Fix Medicare Advantage or the Medicare System Could Come Crashing Down, Analysts Warn
Renewed attention on the privately run program comes in the wake of the killing of UnitedHealthcare CEO Brian Thompson.Medicare Advantage, the privately run version of the government’s Medicare program for persons aged 65 and older, is in need of a drastic overhaul. That is the view of critics, who point out that while insurers such as UnitedHealth Group have deep pockets, the Medicare Hospital Insurance Trust Fund is projected to be depleted in 2036, according to the nonprofit KFF.
Left alone, Medicare Advantage risks making the overall costs in Medicare unsustainable, both for the government and the American people, according to numerous experts interviewed by the Sun.
Premiums for Medicare’s Part B plan — which covers visits to doctors, outpatient care, preventative services such as vaccines, medical equipment such as wheelchairs — will increase by about 6 percent to $185 a month in 2025, the Centers for Medicare & Medicaid Services announced in November.
Although the agency expects that average Medicare Advantage premiums will decrease in 2025, average drug deductibles and maximum out-of-pocket costs are poised to grow. For example, KFF finds that the average drug deductible charged by Medicare Part D plans, a voluntary benefit which helps cover the cost of prescription drugs, is increasing four-fold to $225 in 2025 from $59 in 2024.
Medicare Advantage plans may fill some coverage gaps and offer additional benefits, such as dental care, vision care, and transportation benefits. Offered by contracted private insurers, Medicare Advantage typically has lower premiums and optional coverage, while traditional Medicare often offers more flexibility when it comes to choosing doctors.
The nation’s largest provider of Medicare Advantage is UnitedHealthcare, whose chief executive, Brian Thompson, was murdered last week. The shooting suspect, Luigi Mangione, may have motivated by resentment at what he called “parasitic” health insurance companies. The publicly traded UnitedHealth Group is the eighth most profitable company in the world, as of July 2024.
History suggests that improving public health and improving access to health insurance are not synonymous. The Affordable Care Act, signed into law by President Obama in 2010, has expanded health insurance coverage and pushed down uninsured rates. But the national average monthly premium paid in the individual market more than doubled between 2013 to 2019, according to the Heritage Foundation.
Or just let it burn.
