Insurers: Cuts to Medicare Advantage will hit poor, minorities

Cuts to Medicare Advantage will disproportionately hurt poor seniors and minorities, the health insurance industry said Thursday.

America's Health Insurance Plans (AHIP) has pushed back hard against a proposed cut to private Medicare Advantage plans. The Obama administration proposed the 2 percent cut late last week.

AHIP argued Thursday that Medicare Advantage isn't only popular with seniors, but especially with low-income and minority seniors. 

“Medicare Advantage is a lifeline for millions of low-income and minority Medicare beneficiaries who rely on the high-quality coverage and innovative programs and services these plans provide,” AHIP President and CEO Karen Ignagni said in a statement.

Private Medicare Advantage plans are more popular among black and Hispanic seniors than they are overall among seniors, according to AHIP's report. 

AHIP also said 41 percent of Medicare Advantage recipients have an annual income of less than $20,000, compared with 37 percent of all Medicare beneficiaries.

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