Medicare Advantage Cuts Will Cost Recipients Thousands

Medicare benefit recipients across the United States could lose an average of $2,235 if proposed cuts to Medicare Advantage plans go into effect next year, with the largest losses projected for beneficiaries in Louisiana and Washington, D.C.

According to a report issued by the American Action Forum, Louisiana residents stand to lose $3,367 annually, or almost 24 percent of their benefits, while Washington, D.C. recipients could lose $3,374 annually, a 26 percent loss.

The cuts, proposed by the Centers for Medicare and Medicaid Services, would be in addition to already scheduled reductions planned through Obamacare and the American Taxpayer Relief Act.

Obamacare calls for reductions in Medicare payments of $716 billion through 2022,with a large portion of the cuts coming through payments for the advantage plan, which allow beneficiaries to use Medicare dollars to choose an outside, privately-run health plan to help offset costs.

The other top 10 states facing cuts are Texas, with $3,126 on average for each beneficiary; NewYork, $2,772; Alaska, $2,582; Hawaii, $2,540; Massachusetts, $2,517; New Jersey, $2,410; California, $2,377; New Mexico, $2,236. The U.S. territory of Puerto Rico is also facing cuts of $3,056 per recipient if the proposed cutbacks go through.