A.M. Best Co.
A.M. Best Comments on Potential Impact of Medicare Legislation to Health Insurers
Published in Aging and Elder Health Week, August 3rd, 2008
A.M. Best Co. expects that health insurers will take measures to counteract the impact of the passage of bill H.R. 6331, which would impact plans participating in Medicare Advantage (MA). Bill H.R. 6331 has many provisions, but the largest potential impact to private MA plans are: the elimination of deeming on the MA Private Fee For Service (PFFS), the elimination of Indirect Medical Education (IME) payments, the elimination of the regional MA stabilization fund and the extension/expansion of MA Special Needs Plans (SNP) for chronically ill individuals.
Historically, when Congress has passed legislation that resulted in a reduction in Medicare funding, insurers modified...
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