I would like to commend you for your excellent, well-balanced article in the March 7 issue, “What will happen to Medicare Advantage?” (Prime Times section).I would like to elaborate on one of thepoints which was made.
Next year, funding to Medicare Advantage plans will be cut by 2.3 percent. No matter how justified one may believe those cuts are, we still have to live with the basic laws of economics. The first thing one learns in an intro economics class is the concept of supply and demand. When theprice of somethinggoes down, you have less of a supply of that item. Thus, if Medicare Advantage funding goes downsome plans will offer fewer benefits while other plans may exit the business. This is not a Democratic or Republican theory but a basic economic fact.
President Obama stated that if you like your health plan you can keep it. As leader of our nation, Obama is a powerful person but even he cannot change the laws of economics.