( CNN ) -- The federal government has reversed a proposed cut that could have left millions who get their health insurance through the Medicare Advantage plan paying more for coverage . The Centers for Medicare and Medicaid Services ( CMS ) announced Monday the final Medicare Advantage rates for 2014 . CMS had initially proposed a 2.3 % reduction in what the government pays the insurance companies that provide the plans -- a move that would have saved the government money but potentially would cost the public more . However , CMS on Monday announced a 3.3 % increase instead . Insurance companies were upset by the proposed cut , and spent the public comment period time lobbying legislators and running ads against it . Ads from the America 's Health Insurance Plans ' Coalition for Medicare Choices called the proposal `` drastic '' and `` too much '' and featured seniors saying they ca n't afford to pay more for health care . About 25 % of the 47 million Americans on Medicare pay more to have Medicare Advantage . The plans are run by private insurance companies that are reimbursed by the government for doing so . The plans vary , but they offer the elderly more than they would get with regular Medicare . Most plans offer prescription drug coverage ; some also offer dental and vision . All the plans cap a person 's out-of-pocket expenses , while regular Medicare does not . Seniors wo n't know what their out-of-pocket costs will be until the fall , when insurance companies put in their bids for government work .
The Centers for Medicare and Medicaid Services reverses a proposed cut . A new study finds that the cuts would cause more than half of all Americans to lose health insurance by 2026. Instead , the organization announced a 3.3 % increase .