make WWAY your homepage  Become a fan on facebook  Follow us on twitter  Receive RSS Newsfeeds  MEMBERS: Register | Login

Obama administration eases pain of Medicare cuts

READ MORE:

By RICARDO ALONSO-ZALDIVAR
Associated Press

WASHINGTON (AP) -- Millions of seniors in popular private insurance plans offered through Medicare are getting a reprieve from some of the most controversial cuts in President Barack Obama's health care law.

The administration says it has decided to award quality bonuses to hundreds of Medicare Advantage plans rated just average. Under the new law, the quality bonuses were slated only for above-average plans. Critics call it a political move.

The $6.7 billion could head off service cuts that could have hurt Democrats in next year's elections.

The insurance industry says the bonuses will turn what would have averaged out as a net cut for the private insurance plans in 2012 into a slight increase.

An administration official says the reason for the bonuses is quality improvement, not politics.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

Disclaimer: Comments posted on this, or any story are opinions of those people posting them, and not the views or opinions of WWAY NewsChannel 3, its management or employees. You can view our comment policy here.

»