Enrollees in Medicare Advantage plans, the sort of privatized alternative to traditional Medicare, may soon have a wide array of services available to them, beyond what is generally thought of as "health care." That could include everything from air conditioning to groceries under new federal rules.
On Monday, the Centers for Medicare & Medicaid Services (CMS) expanded how it defines the "primarily health-related" benefits that insurers are allowed to include in their Medicare Advantage policies. And insurers would include these extras on top of providing the benefits traditional Medicare offers.
"Medicare Advantage beneficiaries will have more supplemental benefits making it easier for them to lead healthier, more independent lives," said CMS Administrator Seema Verma.
Of the 61 million people enrolled in Medicare last year, 20 million have opted for Medicare Advantage, a privately run alternative to the traditional government program. Advantage plans limit members to a network of providers. Similar restrictions may apply to the new benefits.
Any number of things could be available from grocery and meal delivery to accessibility features like grab bars added in beneficiaries' homes. All of that is great and all are features that should be incorporated into care for differently abled and geriatric people. It all helps to keep them in their homes.
The problem is identified by David Lipschutz, senior policy attorney at the Center for Medicare Advocacy. "It's great for the people in Medicare Advantage plans, but what about the majority of the people who are in traditional Medicare? … As we tip the scales more in favor of Medicare Advantage, it's to the detriment of people in traditional Medicare.” Tipping the scales toward Medicare Advantage ultimately increases Medicare costs, in a sense siphoning money from traditional Medicare, which about two-thirds of seniors end up enrolling in. MA plans haven't proven to be more cost-effective and a better deal for taxpayers.
These are features that would help all Medicare beneficiaries, and the program should be expanded to include them for everyone, just as it should be expanded to include dental and vision and other coverage MA plans have been offering. The administration is tipping the scales as much as it can to the privatized version of Medicare.