No hike in Health Care Premiums Next Year

The Centers for Medicare & Medicaid Services said on Monday that people on Medicare Advantage plans will see no increase in their health care premiums next year. It was also told that some of the enrollees could also see a light drop in their health care premiums.

According to the officials, enrollees of the Medicare Advantage plans include nearly 900,000 elderly and people with disabilities in Pennsylvania.

Out of the nation's 55 million Medicare beneficiaries, nearly one-third of the enrollees have chosen the Advantage program. The Advantage plan allows commercial insurers to frame health policies that are funded by the federal government.

Program officials said in a statement that the average Medicare Advantage premium would slip by 31 cents to $32.60 a month in 2016. About 59% of enrollees will pay no uptick in premiums, according to Medicare.

Sean Cavanaugh, a Medicare administrator, said, "Elderly and people with disabilities continue to experience stable premiums in Medicare health and drug plans while benefiting from a transparent and competitive marketplace".

So far, program officials have not discussed the reasons for the decline but they have given numbers showing an almost 10% decline in Medicare Advantage premiums since the Affordable Care Act was passed in 2010.

Average premiums dipped in 2014, and then again rose slightly. As per federal rules, the insurers cannot discuss their 2016 Medicare Advantage plans publicly before October. But still a Medicare website has given a limited preview about the matter.

As per the website, the Western Pennsylvania policy prices may rise whereas others might slide.