Brandon Novick is a Program Outreach Assistant for the Domestic Team at the Center for Economic and Policy Research in Washington, D.C.
This year, the majority of Americans eligible for Medicare coverage chose to enroll in private Medicare Advantage plans rather than Traditional Medicare. Insurance companies that run these MA plans spend significant sums of money to blanket seniors with marketing that highlights the supposed advantages of MA like low upfront costs, supplemental coverage, and other unique perks like subsidizing gym memberships.
In comparison, around 99% of non-pediatric physicians accept Traditional Medicare.Medicare Advantage is a great option for relatively healthy beneficiaries who do not expect to need intensive care for serious illnesses and injuries. Capitated payments do incentivize MA insurance companies to save money by investing in healthy, preventative care and programs. At the same time, the model also incentivizes MA plans to avoid covering the highest quality care for the people most in need.
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