Four years after it introduced Medicare Advantage insurance plans amid much fanfare, Carilion Clinic is quietly dropping out of the business.
In a letter this week to about 3,200 people enrolled in the supplemental plan for senior citizens, Carilion President and CEO Nancy Agee wrote that changes in government funding to the program prompted the decision.
One of the goals of the Affordable Care Act, an overhaul of the nation’s health care system, is to bring the higher costs of Medicare Advantage plans more in line with traditional Medicare.
Carilion is just one of a growing number of carriers to discontinue their plans in recent years.
Officials with the Roanoke-based health care system said the decision to drop the insurance was not directly related to the Affordable Care Act, but rather to the fact the government payment rates were no longer adequate to cover their costs.
The cuts “would have required our plan to significantly reduce benefits or charge significantly more just to stay in business,” Agee wrote.