Expect to pay more for Medicare Advantage
Many insurance companies that offer Medicare Advantage Plans will most likely increase costs for their 2010 offerings. Carriers will see a 4.5% reduction in reimbursement rates from Medicare and this will have a significant effect on their ability to continue to offer a similar plan design as they offered for 2009 plans. The choice they will have to make with their private fee-for-service plans will be whether to raise monthly premiums or make the cost sharing greater for their members. Neither one of these choices is good news for Advantage Plan members.
The original idea behind an Advantage Plan was to offer the Medicare beneficiary, that was unable to afford the cost of a Medicare Supplement, the ability to get lower cost sharing for services at little or no monthly premium. In addition to a lower cost sharing structure, members were to receive additional benefits not normally covered by original Medicare. But if costs increase for 2010 plans, it hardly seems worth it to get extras like; vision, dental, hearing and gym memberships.
The right time to look at all Medicare options
The annual enrollment period (AEP) for Medicare Advantage starts November 15 and runs through December 31. You owe it to yourself to take a look at all the options that are available to you. Receiving your new member cards and info for 2010 Medicare Advantage from your 2009 Advantage Plan provider and putting them aside without further investigation, could be your worst move. Your annual enrollment period exists for a reason. Insurance companies can change plans on a year to year basis and you need to assess the new offering. In addition to assessing your current carriers’ new offering, you need to take a look at what else is available. Start by going to the Medicare website and looking at what other Advantage Plans are available in your area. If you want to stay with an Advantage Plan, another carrier may offer a better option for you.
The AEP is a good time to take a look at what Medicare Supplements are available. Medicare Supplement insurance or Medigap coverage consists of several standardized plans that to one degree or another, offer coverage for the gaps that original medicare does not cover. You may qualify for a guaranteed issue period, so you can purchase a supplement without being subject to medical underwriting. If you choose a Medicare supplement policy, you will also need to secure stand alone Part D prescription drug coverage as well. Unlike some Medicare Advantage Plans, supplements do not include Part D coverage.
With costs rising for Medicare Advantage Plans in 2010, this is the right time to assess all your options. You may find that the price disparity between an Advantage Plan and a supplement is not that great. If you qualify medically or are in a guaranteed issue period, you owe it to yourself to see if a supplement would meet your budget. If you are able to purchase a supplement policy, you will not be subject to the changes in your coverage each year. Having an affordable standardized plan can provide you with a little piece of mind.
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Is Medicare A & B increasing in costs in 2010 from the costs in 2009?
By: Vernon M. Bevans on September 1, 2009
at 9:56 am
A search of the Medicare website does not have any information on what CMS will do as it relates to Medicare parts A and B premiums. Last year guidance was issued from CMS on 09/19 as it related to 2009 parts A and B premiums. So if there’s any consistency, I would continue to check http://www.medicare.gov in the coming weeks.
By: David Forbes on September 1, 2009
at 5:18 pm