Medicare Advantage Plan: Boon or Bane?
Recently, Cigna is being sued for civil fraud by the United States government on allegations that the company inflated its Medicare Advantage payments.
Medicare Advantage Plan, also known as "Part C" or "MA Plans," is a health insurance scheme in which private health insurers approved by Medicare are reimbursed substantially by the federal government for providing insurance coverage to retired Americans. Because of this, insurance companies have become motivated to sign up as many seniors as they can. While advertisements for Medicare Advantage plans highlight the benefits (such as dental, eye, and hearing coverage and gym membership discounts) they offer, the reality is that these plans typically impose heavy restrictions and financial requirements that can quickly drain a patient's savings.
Over the years, there have been several reports and studies that prove insurers cheated the system to illegally collect billions more in government funds. The government pays "MA" insurance companies a set amount for each enrollee, with higher premiums for those with more serious medical conditions. The complaints allege that the insurers have developed intricate procedures in place to make their patients look as ill as possible, often without giving any further care.
Because of this, a system that was designed to help reduce healthcare costs has become far more expensive than the one that it was meant to replace.
