Medicare Advantage plans will be losing some funds starting in 2012 which is the opposite of what was announced previously.  The Centers for Medicare and Medicaid Services (CMS) says Medicare Advantage Plans are scheduled to receive a .16% cut in reimbursement in 2012.  The article “Medicare Advantage Plans to Get Less in 2012″ by Emily P. Walker on MedPageToday.com, also says that this estimate differs from what CMS projected in February when it said Medicare Advantage would see an increase of about .7% come 2012.

Apparently the change is due to lower 2010 physician outlays but the announcement is discouraging to those hoping for good things from the Affordable Care Act.  CMS has the authority to review health insurance company’s proposed rates.  2012 will be the first year where CMS has given specific percentages that will trigger a review if a company’s rates are not in line with expectations.

This update also includes account changes in Medicare Part D, the prescription drug benefit that was included in the Affordable Care Act.  Deductibles for Medicare prescription drug plans will increase by $10 in 2012 announced by CMS.  Increases are no surprise, but when announcements from CMS conflict one another it can be frustrating.  Individual health insurance for seniors is meant to be affordable with clear cut choices but that isn’t always the case.  Hopefully, by 2012 they will figure out a plan that is user-friendly and affordable for Medicare beneficiaries.