If you’re among the 24 percent of Medicare beneficiaries who’ve chosen a Medicare Advantage plan, now is the time to review that decision. While these private insurance plans, typically HMOs and PPOs, have been growing in popularity, that comes at a price.
In 2011, a shift away from government subsidiaries for Medicare Advantage (MA) plans will mean that MA payments will be frozen. By 2012, the government will start to reduce payments until MA plans only receive about as much as original Medicare spends.
Without government subsidies, MA plan premiums are expected to rise gradually in the coming years. It’s even possible that certain insurers will stop selling MA plans. Which plans will be affected? Payment cuts will not affect all plans equally. Medicare costs where you live will make a difference. Plus, the highest-quality plans will receive bonus payments that can balance out fee cuts. It’s expected that the low-quality plans will be the first to go.
If you decide to drop your MA plan, you may change to another MA plan or original Medicare during open enrollment between Nov. 15 and Dec. 31. In addition, you can also change during the first 45 days in 2011 during MA open enrollment. To see what Medigap insurance has to offer, you can see all ten different Medigap plans at MediGap Advisors. If you have more questions or just want to discuss your situation with an expert on how to fill the gaps in your Medicare coverage, call MediGap Advisors at 866-323-1441. There’s never a charge for a confidential consultation with one of their independent licensed agents.
Jim McFadden has over 11 years of executive-level experience in the health insurance industry, is a youth baseball, softball and football coach, and has one of the worst fantasy football records in the world.