Beginning in 2010, some changes to Medicare Advantage plans will occur as a result of the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA).

How will MIPPA affect Medicare Advantage plans?
MIPPA affects many parts of the Medicare program. Here's how it will affect Medicare Advantage plans:

• Federal funding will be reduced by $13.8 billion over five years, beginning in 2010
• After 2010, most Medicare Advantage PFFS plans will be required to have a contracted provider network. “Deeming” will go away.

How does this affect employers?
For the vast majority of employer groups, we don't anticipate the reductions in funding to significantly affect group plan premiums.

While it will be more difficult to offer Medicare Advantage PFFS plans after 2010, UnitedHealthcare is working to develop viable alternatives for our clients who need national coverage solutions and want to continue providing cost effective Medicare insurance solutions.

How is UnitedHealthcare responding?

We're committed to the future of our employer group Medicare Advantage plans. We plan to expand our networks and to work closely with the Centers for Medicare & Medicaid Services (CMS) to develop new programs to meet our clients’ needs.

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