For the past two years the Administration has slashed payments to Advantage plans even as costs and utilization have been increasing. Baby boomers need more joint replacements and other procedures as they get older. Hospitals and physicians are passing on their rising costs to insurers in new contracts.

Berkeley Research Group projected that Medicare Advantage medical costs will climb 4% to 6% next year. This is creating a financial squeeze for insurers. The Administration says its Advantage cuts are nothing to worry about because plan premiums are expected to remain stable next year. This ignores that insurers are scaling back offerings and benefits.