Virginia health system ends Medicare Advantage plans

Fredericksburg, Va.-based Mary Washington Healthcare will no longer offer Medicare Advantage plans beginning next year, citing rising costs, operational challenges and the impact of COVID-19, according to an Oct. 11 report from The Free Lance-Star.

The insurance plan started four years ago and has about 2,613 members. Six months ago, discussions to end the plan began. The health system operates two hospitals, an emergency department and more than 60 outpatient facilities. 

The system learned that its third-party plan administrator will no longer provide services next year. After struggling to find a replacement, the system realized that the Medicare Advantage plan made it difficult to control costs.

"Ending our plan is not a decision made lightly," Mike McDermott, MD, president and CEO of Mary Washington, wrote in an Oct. 1 letter. "We know many of our members will be disappointed and we share this feeling."

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