The news came today as a big surprise to 16,000 Medicare Advantage subscribers in Florida that United Health Care is dropping some of the best doctors, hospitals and clinics that they have been using, sometimes for years.

I have been warning people for years that the MA programs would be on their way out,but everybody was so happy to be getting cheap health care that they simply ignored the warnings.

I see this move on the part of United Health Care as being the tip of the iceberg, and that other companies will follow suit before long. The reason is that these programs are too highly subsidized and waste about 15 billion dollars per year of Medicare dollars.

For some time now the Feds have been warning that they will be cutting subsidies, and although they claim to be raising them a bit for next year, the handwriting is on the wall. United Health Care is being demonized for making this move, but in truth, they are starting to dump the lowest paying of these programs now in order to position themselves in a more financially sound way.

The bottom line is that if you want to get something for nothing, you may be able to do so for awhile, but in the end, it will disappear.

That is what is happening right now in Florida.

Photo Credit: Morguefile.com

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