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Proposed cuts to Medicare Advantage plans out, payments hikes in
Sacramento Bee

In a move that blunts a potent line of political attacks from Republicans, the Obama administration reversed itself on Monday, announcing that private health plans that provide Medicare benefits will see a slight increase in government payments next year, rather than the reduction that was proposed earlier.

Congressional Democrats, many facing tough re-election bids, had recently joined Republicans in asking that these private health plans, known as Medicare Advantage, be spared from payment cuts next year, even though they receive an average of six percent, or $8 billion, more this year to cover their enrollees than it would cost under the traditional Medicare program.

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