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Letter to the editor

Lure of Medicare Advantage: Hard cash

By KRIS HUNDLEY, Times Staff Writer
Published December 29, 2007

There's a billion-dollar money machine in the Tampa Bay area revving up for another year, and it's called Medicare Advantage.

These are the private insurance plans that offer the plus-65 age group enhanced health benefits made possible by generous federal reimbursements. In 2007, thousands joined these plans representing more than $1.5-billion in revenues. Next year promises to bring in even more.

That accounts for the fevered pitch of Medicare marketing as open enrollment for 2008 plans nears the deadline Monday.

Insurers hosted a slew of free lunches, luring new members with zero premiums, gym memberships and even cash-back deals. Their target: the nearly 200,000 area seniors who opt out of traditional Medicare and let a private insurer handle their health care costs.

Numbers add up and up

Here's a look at the federal dollars bankrolling the feeding frenzy:

What Medicare will pay private insurers next year to provide medical benefits for their Medicare Advantage members (per member/per month)
Citrus: $778.20
Hernando: $936.21
Hillsborough: $820.17
Pasco: $860.82
Pinellas: $868.59

Number of local residents enrolled in Medicare Advantage plans in November 2007:
Citrus: 4,640
Hernando: 16,330
Hillsborough: 48,781
Pasco: 36,738
Pinellas: 60,044

Amount private insurers will receive in Medicare reimbursements each month from members in the Tampa Bay area (at November enrollment levels):
Citrus: $3.4M
Hernando: $14.5M
Hillsborough: $37.9M
Pasco: $30M
Pinellas: $49.4M

Source: Centers for Medicare and Medicaid Services

[Last modified December 28, 2007, 22:45:54]