December 28th, 2009

Philadelphia Inq reports:

MIAMI – Insurers constantly caution seniors that Medicare Advantage benefits such as hearing aids, dental payments, and gym memberships will fizzle if Democrats get their way and cut government subsidies for them.

But tens of billions of Medicare dollars funneled through insurers also pay for extras that never reach beneficiaries: multimillion-dollar salaries, executive retreats in Hawaii, Scotland, and Cancun; and massive spending on marketing to lure more customers to the privately administered Advantage plans that serve as an alternative to government-provided Medicare.

The government-subsidized benefits that seniors on Advantage plans receive – often at premiums lower than Medicare premiums – are real, and are in danger in some cases if the health-care overhaul working its way through Congress is enacted.

Medicare Advantage subsidies are slated to be reduced to pay for the overhaul. Though there are marked differences between House and Senate versions, both would lower payments to private Medicare Advantage plans, which on average cost the government 14 percent more than traditional Medicare.

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