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Extra Medicare payments for private health plans to total $2.75 billion in 2004

ional payments to rural plans is relatively small at $232 million. Urban plans have extra payments of 8% but more enrollees, so their extra payments total more than $2.5 billion.

While part of the extra $2.75 billion in payments will result in additional benefits for Medicare Advantage enrollees, these will not be distributed equally. More than 40 percent of Medicare beneficiaries, particularly those living in rural areas, do not have access to a Medicare Advantage plan, and urban beneficiaries may have physicians who are not in plan networks.


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Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
20-May-2004


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