Major Medical Associations Reject Medicare Advantage Plans

Two influential medical groups with San Diego-based Scripps Health are canceling their Medicare Advantage contracts for 2024 due to low reimbursement and prior authorization issues, leaving 30,000 enrolled seniors to find new doctors or different coverage. The CEO of Scripps Health cited annual losses exceeding $75 million as the reason for the withdrawal, emphasizing that the losses are unsustainable. The affected beneficiaries will receive notices directly from the plans, and they have the option to switch to traditional Medicare or other hospital systems that still accept Medicare Advantage plans. The issue of low reimbursement and prior authorization is a growing concern for physicians and hospitals, leading to more medical groups terminating their Medicare Advantage contracts.