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How Obamacare strengthens Medicare Advantage

This post was updated on September 21, 2012.

Mitt Romney’s plan to turn Medicare into a voucher system is not sitting well with seniors, so he is resorting to launching false attacks on President Obama’s plan. On Medicare Advantage, Romney said, “The Medicare Trustees just came out with a report that said 4 million seniors will lose their Medicare Advantage plan. The one they’ve chosen.”

Here are the facts:

  • Today, Medicare Advantage is stronger than ever. Premiums are 10% lower and enrollment in 28% higher than it was before the Affordable Care Act passed.

  • Any senior that wants a Medicare Advantage plan can chose one—and when they do, they’ll always be promised every single one of Medicare’s guaranteed benefits.

    Before Obamacare, the government overpaid the private insurance plans in Medicare Advantage. The Medicare Trustees said those extra payments “resulted in higher Medicare costs overall and higher premiums for all Part B beneficiaries, not just those enrolled in Medicare Advantage plans.” That’s right—everyone paid higher prices so Medicare could give subsidies to private insurance companies.

  • All the health care law did was get rid of those extra subsidies—saving $156 billion over 10 years, according to the CBO. Because of this and other reforms, people with Medicare will save $4,200 over a decade.

Click here for more on how each candidate’s plan would impact seniors.