Health Insurance Blog

The online AARP Bulletin Today has a plethora of health care reform information for their members to sort through.  Many members are fearful of how their medicare and AARP Medicare supplements will be affected by health care reform if it passes.  The article “Lost in the Rhetoric: New Gains for Medicare Beneficiaries” by Susan Jaffe clears up some of the confusion.

The article points out that proposed legislation could offer additional benefits and more flexibility for improved Medicare.  Both the House and Senate health care bills would reduce overpayments to private insurance companies offering Medicare Advantage plans.  In the Senate bill there is a provision that guarantees that no basic Medicare benefits would be removed and that the savings are to be used to improve health care.

There are also some additional benefits being added to Medicare for free.  These include mammograms and colonoscopies, two of the most important tests for seniors.  There will also be annual medical checkups for Medicare beneficiaries free of charge.  Overall the proposed bills are trying to make Medicare and individual health insurance simpler and more affordable for Americans.  It’s still in a wait and see stage.

The WhiteHouse.gov website has information on the new health care reform bill.  They specifically discuss the changes being made to Medicare.  To pay for the health care reform bill there needs to be $313 billion in savings to create a deficit for an overall neutral plan.  The article says that America has the most expensive health care system in the world but points out that we do not get the best results.  Something new is needed to change this.

The majority of the savings which will help pay for the new bill comes from savings in the Medicare and Medicaid system.  There are 3 main points to saving in Medicare which include incorporating productivity adjustments into Medicare payment updates, reducing subsidies to hospitals for treating the uninsured as coverage increases, and pay lower prices for Medicare Part D drugs.

The pharmaceutical industry has committed to slowing the rate of increase of health care costs.  This will also help keep health insurance quotes down as most Americans will be required to carry health insurance coverage.  The Administration is continuously working with Congress to develop the best ways to achieve the necessary savings.

On AARP’s website they have what is called a “Doughnut Hole Calculator” which has been designed for the 2010 Plan to avoid falling into a gap for Medicare Part D coverage.  It’s a four step tool that is very useful for saving you money on your health insurance quotes.

The Doughnut Hole Calculator is easy to use.  First, gather your medications and drug plan cards and go onto AARP’s website.  Enter the name of each drug, dosage, and how often you take it.  Then you can view a chart to determine if you are going to hit the “doughnut hole” for Medicare Part D.  The calculator will give you a list of alternative drugs that are similar to the prescribed drugs but they can dramatically reduce expenses and stretch your AARP Medicare supplements coverage.  They supply a form letter you can print out and show your doctor to ensure the drugs will suit your needs.

You can learn more about avoiding a gap in your Medicare coverage on AARP’s website.  You can also read and share experiences with the Doughnut Hole Calculator to see what other people are dealing with.  There is an online community available to members which many find extremely valuable.

According to the article “Medicare ‘Buy-In’: A bargain or burden?” by Richard Wolf for USA Today, the latest health insurance proposal involves letting people use Medicare starting as early as age 55.

While this may sound appealing to many, the Medicare premium has not been determined and it could be costly.  Senate Majority Leader, Harry Reid, and other Democrats are considering expanding eligible consumers for Medicare and maybe Medicare supplement insurance plans.  This is an effort to break a deadlock between liberals and moderates who are unable to agree on a government run health insurance plan.

Details of this proposed plan are still pending an analysis completed by the Congressional Budget Office, who will project costs associated with the plan.  Those who are ages 55-64 who are uninsured or looking for more competitive premiums would likely be eligible.  Most consumers with employer based coverage would not be eligible for early Medicare coverage.  Finding health insurance for this age group may get easier if this plan is put into effect.

The article “How Do You Choose the Best Medigap Policy” found on Todaysseniors.com, shares some helpful information for today’s senior citizens when choosing Medicare suppplement insurance.

There are dozens of Medigap plans out there, from UnitedHealth Care’s Secure Horizons, to AARP so it’s hard to tell what is the best value.  The good thing to know is that with each Medicare supplement plan, benefits are the same with each company.  Salesmen may try to imply otherwise, but this is mandated by the government.  Premiums can vary significantly though, so it’s important to shop around. 

The most ideal time to shop around for a Medicare supplement insurance plan is during the first 6 months after enrolling in Medicare Part B.  This is the time where insurance companies have to accept you regardless of any pre-existing conditions.  Paying a high rate for a standardized Medicare supplement plan will not get you anything more.  Their benefits are the same and so are their claim filing requirements.  Familiarize yourself with each of the different plans, understanding that Plan A has the fewest benefits with the lowest cost whereas Plan J has the most benefits and is the most expensive.

The AARP recently announced they are supporting the idea of a government run health care system according to the article “Why Has the AARP Sold Out Its Members on Healthcare” by Al Ritter for the Baltimore Conservative Examiner.  This is interesting because the AARP is a self declared non-partisan group.

In 2008 AARP made about $653 million in royalties from insurance companies that sold products referred by AARP.  This is huge considering membership fees only brought in about $249 million that same year.  Seniors have two main choices for Medicare supplement insurance plans, Medicare Advantage and Medigap.  Medigap supplemental insuranceis endorsed by the AARP and they receive royalties from the company.  With Medicare Advantage health plans at risk with the new health care proposal, the hope is that more people will purchase Medigap and therefore AARP will make more money.

Section 1161 of the House bill cuts payments to the government run Medicare Advantage health plan which is used by about 20% of senior citizens.  It may cause them to lose some of their benefits such as health, vision and dental coverage and this is why they may be forced to purchase AARP Medicare Supplements.