Insurers Cut Benefits for Millions of Seniors After Trump's Medicare Payment Hike
Two of the largest Medicare Advantage insurers in the US, UnitedHealthcare and Humana, are cutting benefits for over 3 million seniors. In an effort to boost their bottom lines, they're exiting 'underperforming' markets and reducing coverage. This means that around 1.1 million people will lose their plans by the end of this year.
UnitedHealthcare has dropped about 13% of its plans across 18 states and cut allowances for over-the-counter health items. Humana's exit from certain markets will impact approximately 600,000 members. Seniors who lose their MA plans will have to find a new one during open enrollment or switch to traditional Medicare.
The companies' moves come after the Trump administration provided a substantial payment increase to Medicare Advantage plans last April. Critics argue that this increase enables insurers to deny necessary care and overbill the government.