how long will medicare advantage plans be around?

Question

the math just is not workin out. Someone is taking a loss in this equation. i dont see how the plans are free, pay the agent 300-450 dollars. i know cms pays like 8,000 a year to pay the premiums. i dont get why they would pay that. if it is to save cms money then it would be costing the insurance company. someone please enlighten me.

Answer 1

Remember that employers and employees not covered by Medicare are still paying into the system. No one knows how long Medicare Advantage will be around. Some hospitals do not accept and seem to rather wait for the traditional Medicare to pay them directly, even though they receive limited money for each service rendered.

The amount to the agent is not huge. On most health and insurance products we get a larger commission during the first year and then a small amount in the following years if the products are renewed. Sometimes we are charged back if the product is cancelled. There is no additional compensation paid to agents after the initial payment that I'm aware of.

Answer 2

I'm not sure what you question is, but here goes.
1) Not all medicare advantage plans are free.
2) Don't know why you'd be paying an agent 300-450....
3) Most plans cost between $25.-$100 a months for medicare advantage, in most areas. If you found premium free MA, way to go!

I think the question you're asking is how does medicare pay out all the claims, considering the incoming amount of $ via premiums is so low... They invest the premiums, and make them grow...Then pay the investment profits back out for claims... in addition to the taxes we pay for medicare. Even if you use MA, the insurance company that is administering the plan still receives $ fr the government.

I think the real answer you're looking for is... A fee to an agent is unnecessary. And, the companies invest the premiums you pay.

Answer 3

The only losses will be in actual health care. Insurance companies are always the big winners.