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David Hogberg: ObamaCare May Hurt Medicare Advantage Plans For Poor

POSTED BY Galen Institute on May 15, 2012.

Many low-income seniors could lose access to their preferred Medicare Advantage plans due to ObamaCare changes.

A new report released by the conservative American Action Forum on Tuesday argues that changes made to the five-star rating program for MA plans may reduce plan choice and direct Medicare resources away from low-income areas.

The Center for Medicare and Medicaid Services rates MA plans on a system of one to five stars, depending on how the plans satisfy certain criteria.

Under ObamaCare, beginning in 2015 plans that achieve four- and five-star ratings are eligible for bonuses, which can boost an insurer’s bottom line, and rebates that the insurers must use to expand benefits for plan enrollees.

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