In early April, the Obama Administration delayed cuts in the Medicare Advantage program mandated by Obamacare. These plans, used by 30% of Medicare beneficiaries, supplement traditional Medicare coverage. The planned cuts to the MA program risked a political firestorm just months before the midterm elections. While MA received a short-term pardon, the Obama Administration is going forward with dramatic cuts to home health care services for seniors.
Over 3.5 million seniors receive health care services in their home. Over 60% of the recipients are women. These beneficiaries tend to be older, poorer and sicker than the overall Medicare population. Because of this, they often lack transportation, making home health care services critical for their well-being. Those impacted by the ongoing cuts are the most vulnerable and at-risk seniors.
Obamacare gave the Obama administration wide latitude in containing spending in the program. In a decision that baffled critics, however, the administration chose to impose the maximum cuts allowed, cutting reimbursements by 14% over the next four years. The announced cuts will dramatically shrink the home health care sector and leave over a million seniors without access to health services.
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