Seniors seem to love Medicare Advantage Plans.  In some areas, such as South Florida, 40% of seniors aged 65+ have enrolled in these plans for those eligible for Medicare. Nationally about 22% of seniors are enrolled in Medicare Advantage plans.

It isn’t hard to see why these plans are popular, many Medicare Advantage plans require members to pay no monthly premiums in addition to no deductibles or co-pays to see their doctors.

However, Medicare Advantage plans may become collateral damage of health care reform which is primarily focused on addressing the nations uninsured.  President Obama seeks to cut $177 Billion in federal payments to private health plans over the next decade in order to finance his plan for health care reform.  A large portion of these cuts to payments to private health plans will likely be in subsidies for Medicare Advantage Plans, which at the very least could mean a reduction in benefits and/or increased monthly premiums required by members.