Health Insurance Blog

Based solely on national market share, the “top”  (i.e. largest membership base) Medicare Supplement providers in the country in 2008-2009 were as follows:

1.  United Healthcare (driven by AARP contract) 29% market share

2.  Wellpoint  8%

3.  Mutual of Omaha 6%

4.  Health Care Services Corp.  5%

5.  Conseco 4%

As you can see, the five largest carriers account for 52% market share, and the remaining 48% is captured by dozens if not hundreds of smaller companies.

When Medicare Advantage and other Medicare products are factored into the mix, like prescription drug plans (PDP), the top four companies would be AARP, Humana, Wellpoint and Universal American respectively.

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.

Support is growing for a proposed health care system overhaul that would require all Americans to maintain health insurance coverage.

The mandate, which is being proposed by insurance industry leaders has received support from an coalition of doctors, hospitals, nurses, business, consumer, and insurance groups which have agreed on a set of ideas for reform, which also include the health insurance mandate.

The aforementioned coalition is called the Health Reform Dialog, and includes AARP, American Hospital Association, and the U.S. Chamber of Congress among other influential groups.

President Obama, who initially was not a supporter of such a mandate seems to be softening his stance, mentioning in a White House question-and-answer session on Thursday that the issue will be “part of the debate.”

UnitedHealth Group announced that Ovations, their health and well-being company for seniors, is launching a new portfolio of Medicare Health Plans for 2009.

Ovations’ Medicare portfolio includes Medicare Advantage plans, Medicare Part D prescription drug plans, Medicare Supplement insurance programs, and innovative special needs plans.

to find more information about the new medicare plans being offered by UnitedHealth Group, visit www.uhcmedicaresolutions.com

Bloomberg.com reports that premiums for medicare drug coverage will rise more than 20% on average from 2008 to 2009.  This expected rate increase is on the heals of another 20%+ rate increase from 2007 to 2008.

Among the largest medicare drug plans, AARPs MedicareRx is increasing rates by 8% while Humana’s PDP Enhanced plan is raising premiums by 64%.

According to health insurance companies such as Humana, the volatility in premiums charged for these drug plans can be blamed on inaccurate forecasting of drug costs.  Humana’s PDP plan’s premiums have quadrupled since its inception in 2006.  While most senior citizens tend to stick with the same drug plan that they are already enrolled in, the volatility in prices has made it important for seniors to shop around for the best rate.  For 2009 there are nearly 1,700 government approved prescription drug plans, and every Medicare enrollee in the country (except for Alaska) has a plan available to them at a monthly cost of less than $20 per month.

Nationally, about 16 million Americans enroll in a standalone medicare drug plan such as AARPs MedicareRX, as opposed to obtaining drug coverage through a comprehensive health care plan such as Medicare Advantage.