How can Aetna afford to pay our Medicare Part A and B claims for such a low premium?
A – The Federal Government provides premium funding to Aetna from the Medicare Trust Fund that is set aside for Medicare claims payment and program administration. Once a Medicare beneficiary elects to join Aetna, the Federal Government forwards funding which effectively subsidizes all or part of the costs associated with administering benefits as a Medicare contractor. The premium that is passed to retirees, if they get less than a 100 percent subsidy, is for the supplemental coverages under the Aetna Medicare Open Plan.
