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Switching to Traditional Medicare Costs Government More: KFF Study


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  Study also suggests some older Americans may struggle to access care through Medicare Advantage private for-profit insurers.

The article from MSN, citing a study by the Kaiser Family Foundation (KFF), discusses the financial implications of seniors switching from Medicare Advantage plans to traditional Medicare. According to the study, when seniors switch to traditional Medicare, it results in higher costs for the government. This is primarily because Medicare Advantage plans often have lower payment rates negotiated with healthcare providers, and they also manage care more tightly, potentially reducing unnecessary services. Traditional Medicare, however, reimburses at higher rates and does not have the same level of managed care, leading to increased utilization of services and thus higher costs. The study highlights that this cost increase is significant, suggesting that policy considerations around Medicare Advantage and traditional Medicare need to account for these financial dynamics.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/switching-to-traditional-medicare-costs-government-more-kff-study/ar-AA1vNHMp ]

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