One of the lesser known facts in the world of healthcare in retirement is that Medicare Advantage Plans are subsidized by the government and that the amount is for some staggering.
When the onion is peeled back it can be seen that for every 5 star Advantage Plan sold in the Bronx in New York the private health insurance company will receive $1,114.57 a month as a subsidy from the government
For every 5 star plan sold in Jackson, MS the firm receives $970.25 a month
The most expensive, Miami – Dade at $1,346.58 a month
The total expected to be paid out in 2012 – $1.3 Trillion.
The subsidies are meant to keep rates low and benefits high but with over 70 million people heading to Medicare in the next 15 years how are we going to keep this up?