Two Scripps Health medical groups will stop taking Medicare Advantage in 2024. Scripps says it's losing millions of dollars and contracting with the private insurance companies who manage the plans is not sustainable.
Open enrollment for Medicare began on Sunday. But more than 30,000 Scripps Health clients who have Medicare Advantage plans are now facing a difficult choice: either get new doctors or different coverage.
Scripps Health President and CEO Chris Van Gorder said there was one big thing to understand about Medicare Advantage programs.He said Medicare Advantage plans were just private insurance companies that manage health coverage for Medicare. There are nonprofit companies and there are for-profit companies in the business.
“Usually no copays, no deductibles, takes their profit out and pays the remaining part to the health care providers, the doctors and the hospitals," he said. “In fact, we’re losing more than $75 million a year, and that’s just not sustainable," Van Gorder said.
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