Medicare is the insurance which is beneficial to the seniors after retirement. All the expenses and not covered in the Medicare and thus the Medicare supplement plans and Medicare advantage plans are used by people. They are the insurance which is provided by the private companies. There have been reforms in the law and now people are worried what will happen to their health security. It is heard that the benefits of Medicare and advantage plans will be reduced. The worst news is for those who have and love their Medicare advantage plans. This is the program which is for seniors and they offer more benefits than the original Medicare.
The problem is that the taxpayers are not getting their money back from this program. The recent statistics shows that the Medicare cost are increasing as the overpayments are increasing with the insurance companies. It is been heard that Medicare is going to break and the main reason for that is the Medicare advantage plans. The Medicare advantage benefits increases the cost of government by 14% as compared to the original Medicare. The extra money is used in the administrative tasks.
As per the report it is found that the insurance companies will receive the $139 billion less by 2019 as compared to current time because of these plans. The government has put cuts and the insurance companies are saying they will drop the insurance program if the government does not repeal those cuts. Many of the seniors will become unhappy about this. The Medicare advantage insurance plans are taking the Medicare to the bankruptcy levels. The main reason behind these problems is that the number of seniors is increasing in United States, it is the place where the young population is less and old one is more. Thus it becomes difficult for government to provide the Medicare. In the November midterm elections it was found that the politicians are finding the Medicare advantage plan as major problem and they are repealing the health reform bill. If proper cuts are not made on the Medicare advantage plans then Medicare will be in danger.