If you're under 65, chances are you don't know a lot about a program known as Medicare Advantage. But you will be hearing a lot more about it soon. It has become a major front in the growing war that the insurance industry is waging on the Obama Administration's health reform effort. On Tuesday, the health insurance lobby launched a seven-figure ad campaign in at least a half-dozen states warning: "Congress is proposing over $100 billion in cuts to Medicare Advantage. ... Many seniors will see cuts in benefits."
So what should you know about Medicare Advantage?
The first thing to know, as Ezra Klein has noted, is that Medicare Advantage is not the same thing as Medicare. It is an option that Medicare beneficiaries have had since the 1970s to get their coverage through private insurance companies, rather than the government. It was a big favorite of the Republicans who ran Congress during the 1990s. They poured much more money into the program in hopes that more seniors would sign up with the insurance companies that were promising better service at lower prices. And it has proven to be a pretty sweet deal, at least for the insurance companies and the beneficiaries. For the government--well, not so much.
Excerpt from TIME @
http://swampland.blogs.time.com/2009/10/15/medicare-advantage/?iid=moreontime#ixzz0U2lGD2LH