News Updates

Private Medicare plans, a major source of business for many health insurers, may see a small increase of 1.38% in funding from the federal government for 2011. (rates released Friday, February 19th).

These estimates are preliminary, final rates will not be published until early April.  Wall Street and the Analyst community all have mixed reactions, but last year's reduction in payment (4.8%) to private Medicare plans resulted in upwards of nearly 50% increase in premiums to Medicare Advantage plan members for 2010.  The average health plan receives about $900 per member per month and these cuts resulted in a reduction in revenue of nearly $45 per member per month. Many insurers simply passed the loss onto their members through rate increases.