Mistaken for Dead: The Affordable Care Act and the Continued Resilience of Medicare Advantage

Abstract

AbstractIn 2009, Medicare Advantage became a prime target in the Obama Administration’s efforts to pay for the Affordable Care Act (ACA). After securing substantial cuts to a program the President described as a failure, the Obama administration was compelled to take unprecedented administrative steps to put billions of dollars back into Medicare Advantage. These developments demonstrate how Medicare Advantage’s support constituency, which has come to include Democrats, Republicans, beneficiaries, and the managed care industry, has maintained more political influence in the aftermath of the ACA than some initially believed. The continued and growing influence of the Medicare Advantage constituency does not, however, mean that Medicare is primed for a more conservative turn toward vouchers or premium support. With the provision of generous benefits and increasing evidence that Medicare Advantage produces higher quality health outcomes than traditional Medicare, Medicare Advantage appears to be secure in its current form.