LANSING, Mich. (Michigan News Source) – Even though President Biden vowed to reject any cuts to Medicare and has accused the Republicans of wanting to cut Social Security and Medicare, his own administration announced proposed cuts to Medicare Advantage on February 1st, just days before his State of the Union address. The cuts are part of the Centers for Medicare and Medicaid Services (CMS) 2024 Medicare Advantage “Advance Notice.” Rates are expected to be finalized April 3rd after the public comment period is over.

More than 30 million Americans and 700,000 seniors in Michigan will be affected by the changes. An independent analysis by Avalere Health shows that these proposed cuts could lead to billions of dollars in new, out-of-pocket expenses and/or reduced benefits for seniors and individuals with disabilities enrolled in Medicare Advantage nationwide.

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The analysis shows that the premium hikes to seniors in Michigan who choose Medicare Advantage could lead to an additional $36.63 a month in higher premiums or $439.59/year.

Better Medicare Alliance (BMA) says that if the seniors get lucky and don’t have their premiums raised, they could just as likely have their benefits reduced by $540 per beneficiary in 2024 according to the same Avalere Health analysis. BMA is the nation’s leading research and advocacy organization representing a diverse coalition of stakeholders supporting Medicare Advantage.

Mary Beth Donahue, President and CEO of BMA, warns the cuts “will have a detrimental impact on many of the 30 million beneficiaries who rely daily on the high-quality, affordable care provided by Medicare Advantage. The cuts could threaten important benefits such as transportation to medical appointments, healthy meals, vision exams and preventative dental work. President Biden must honor his promise to protect Medicare by reversing these cuts.”

The Biden administration’s proposed Medicare cuts could disproportionately impact seniors and individuals with disabilities living on a fixed income, who are less likely able to afford higher premiums in addition to the higher costs they face on groceries, utilities, gas and other necessities. An estimated 52% of Medicare Advantage beneficiaries live on an annual income of less than $25,000, compared to 38% of fee-for-service Medicare beneficiaries.

Dr. Elena Rios, President and CEO of the National Hispanic Medical Association, representing 50,000 Hispanic physicians in the United States says, “Medicare Advantage plays a crucial role in expanding access to affordable, quality care among Hispanic seniors across the country. If enacted, these policy changes to Medicare Advantage will lead to higher costs or reduced access to the vital health services that are relied upon by millions of senior beneficiaries. We urge the administration to reverse its policy and preserve access to holistic, affordable and equitable care.”