American Medical News (02/13/12) Fiegl, Charles
Enrollment in private Medicare plans rose by 10 percent, while average plan premiums have fallen by 7 percent. With the Affordable Care Act has come new quality scores and temporary bonus payments for plans that meet performance standards, but other reform provisions that lower federal subsidies to Medicare Advantage plans have not yet taken effect. Insurance plans are concerned about the future changes. The 2010 reform law eventually will cut $200 billion from Medicare Advantage over several years, and the Congressional Budget Office projects enrollment in these plans to drop by 4 million by 2019, increasing premiums for patients in private plans. Medicare patients also saved $2.1 billion on prescription drugs last year due because of reforms to the Part D drug benefit. Healthcare legislation is closing the "doughnut hole" coverage gap that patients reach after spending $2,930 on medications. Catastrophic coverage does not apply until spending reaches $4,700. The reform law will close the gap by 2020, and until then, patients who reach the gap will receive medication discounts.

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