Half a million Medicare Advantage beneficiaries are at risk of losing their benefits: Who is affected?

For decades, Medicare has offered health insurance programs to adults age 65 and older since most workers lose their health insurance when they retire. The rising cost of health insurance affects more than just seniors. Still, last year, the National Council on Aging published a startling report that medical debt held by seniors, $54 billion, has doubled over the last twenty years. The study found that the majority of the four million seniors in medical debt are not chronically ill patients. Instead, “a single unexpected crisis—such as a car accident or bad fall—can plunge a person into debt quickly.” The annual deductible for Medicare Part B, which covers hospital stays sits at $1,632. In other words, this sum must be paid before their coverage kicks in, and for many seniors on a fixed income, the deductible can plunge them into debt.

A single unexpected crisis—such as a car accident or bad fall—can plunge a person into debt quickly. In fact, most medical debt is due to bills from a one-time or short-term health care expense.

Medicare has different components, known as parts A, B, C, and D. Part C, also known as Medicare Advantage, allows recipients to pay for an additional plan that expands their healthcare coverage.

Unfortunately, hundreds of thousands will lose their Medicare Advantage plans after one of the largest providers, Humana, announces it will be exiting thirteen markets across the country.

According to a report from Newsweek, the company’s chief financial officer, Susan Diamond, announced during a Wells Fargo Healthcare Conference this month. Diamond announced that approximately 560,000 members would need to find a new plan.

Earlier this year, the Center for Medicare and Medicare (CMM) estimated that those enrolled in Medicare Advantage plan would see the price tag rise by 3.70 percent. Moving like Humana to move out of less profitable geographies highlights one of the major issues with the healthcare system offered to seniors. In a public system, the priority is ensuring access to coverage, but when the providers are primarily interested in earning a profit, some people can be left without coverage or with plans that so expensive coverage falls out of reach.

The rising cost of health insurance affects more than just seniors; but last year, the National Council on Aging published a startling report that medical debt held by seniors, $54 billion, has doubled over the last twenty years. In part, the high deductible for Medicare requires seniors to pay