Blog - Secure Medicare Solutions

The Future of Medigap Plan F

June 10, 2015 by Garrett Ball · Leave a Comment

The future of Medigap Plan F was recently called into question with the recent passage of the “doc fix” bill, H.R. 2 – the Medicare and CHIP Reauthorization Act. The headline-stealer of this legislation was the stabilization of physician payments through the repeal of the sustainable growth rate model for Medicare payments to physicians. However, one of the lesser-known provisions could impact future Medicare beneficiaries who purchase Medigap insurance.

Specifically, the bill sets forth surcharges for Medicare beneficiaries that choose to purchase either Medigap Plan F or Medigap Plan C, the two Medigap plans that cover the Medicare Part B (doctor/outpatient) deductible. This deductible currently stands at $147/year, but it is projected to increase to $185/year in 2020 and $217/year in 2023. The idea is that these surcharges offset the higher “use rate” on Medicare from people that have Medigap Plan F. Although this has not necessarily been proven to be the case, the idea is that Medigap Plan F policyholders have no “skin in the game” since it doesn’t cost them anything to see a doctor.

Now, it is important to note that the bill specifies “future” beneficiaries (starting in 2020) as the ones who would be subject to the surcharges on Plan F and C premiums. So, at least on the surface, current Plan F or C policyholders would not be affected. However, a deeper look may foretell some consequences on existing policyholders.

To explain, the surcharges will likely greatly reduce the number of new policyholders into those two plans. Once it is understood that the choice to enroll in Plan F or Plan C equals surcharges on top of premium charges, many beneficiaries will pick a different plan. Hypothetically, this would cause upward pressure on Medigap Plan F and C rates, as there would be fewer new policyholders on those plans. So, long term, the outlook for price stability on those plans is not as great as it would be on other plans.

To editorialize a little here, the “overuse” of Medicare by people on Plan F has not been proven. And, although it does make sense in a vacuum, people that have Plan G, for example, have very little “skin in the game” either ($147/year). So, there is not that big of a difference. Also, since the Federal Government has very limited oversight over the Medigap plans – they are to supplement the Federal program, Medicare – it is hard to see how they should be involved in deciding how people choose to cover their “gaps” in Medicare.

All said though, the bill has become law and unless something changes between now and 2020, there will likely be a lot fewer people choosing Medigap Plans F and C at that point. We’ll stay on top of this and other developments, moving forward, and keep you apprised on how they may affect current Medicare beneficiaries.

Filed Under: Medigap Plans, Rate Changes · Tagged: changes to medigap, doc fix, medigap plan c, medigap plan f, medigap plans, medigap surcharges, plan g

Medicare Cards Will No Longer Use Social Security Numbers

April 22, 2015 by Garrett Ball · 1 Comment

Medicare cards will no longer use Social Security numbers as required by a measure in the big Medicare bill signed by President Obama last week. Since its inception, Medicare has used beneficiaries’ Social Security numbers as a part of the Medicare claim number, which is displayed on the red, white and blue Medicare card.

Medicare has four years to implement this large change for new Medicare beneficiaries that sign up for Medicare. Medicare has four additional years to replace existing Medicare beneficiaries cards with a new randomly-generated Medicare claim number. This means that, according to the new bill, Medicare has eight years to fully implement this change.

This change is a result of the increasing incidence of identity theft and need to provide protection for beneficiaries’ Social Security numbers. Most other health insurance companies and programs have long since abandoned the practice of using Social Security numbers as the identifying marker on ID cards, including Medicare Advantage plans (privatized Medicare plans).

The change will, of course, be very costly to implement, and Congress has provided $320 million over four years to implement. This money will come from Medicare trust funds which are financed with payroll taxes and other beneficiary premiums.

Currently, over 4,500 people a day sign up for Medicare, and it is expected that 18 million more people are expected to qualify for Medicare in the next decade. Many new Medicare beneficiaries have been shocked, in today’s climate of identity theft, to find that their Social Security numbers are prominently displayed on their Medicare cards, so this will be a welcome change.

Secure Medicare Solutions client, Larry Williamson, said of the change, “I think it’s high time Medicare caught up with most other organizations that have ceased using Social Security numbers as ID numbers. Medicare cards are cards that you have to have in your wallet, and using the Social Security number just opens you up for the possibility of theft or abuse.”

The plan right now is for Medicare to begin using randomly-generated Medicare claim numbers, which will still be displayed on beneficiaries’ Medicare cards but will not provide the same vulnerability to hackers and thieves.

Garrett Ball owns Secure Medicare Solutions, which is an independent Medicare insurance agency. If you have questions about this change or want additional information, you can contact us here.

Filed Under: Medicare insurance news, Medicare News, Medigap Plans, Secure Medicare Solutions · Tagged: doc fix bill, medicare, medicare advantage plans, medicare cards, medicare legislation, secure medicare solutions, social security numbers, ss numbers on medicare cards

Senate Passes Medicare Doc Fix Bill, Sends to President Obama

April 15, 2015 by Garrett Ball · 2 Comments

There is big Medicare-related news out of Washington today, as the Senate passed
the so-called “Medicare doc fix” bill late last night by a resounding 92-8 majority. This bill was recently labeled as the MICRA – Medicare and CHIP Reauthorization Act. President Obama has already said he will sign the bill when it reaches his desk. So, what exactly does this mean for you, the Medicare beneficiary?

Let’s start from the beginning. First and foremost, this bill is in response to the April 1 expiration of the sustainable growth rate for physician payments. When this expired, a 21% cut went into effect for doctor reimbursement rates for Medicare patients. CMS – the government organization that administers Medicare – announced that it would essentially “hold” claims for 14 days until this bill could be passed and signed. Medicare patients should see no effects from this – or really, even know that it is going on behind the scenes – but it is interesting to know nonetheless.

Even more interesting and important is what is actually in the bill itself. Here is a bullet-point summary of what the bill entails (bolded sections of particular importance to Medigap policyholders):

The bill repeals the sustainable growth rate of physician payments that had been in effect since 1997 – this is the so-called Medicare doc fix.
It replaces that with a .5% increase for physician payments each year for the next five years.
The bill created financial incentives for doctors to bill for quality care (“quality care” not defined at this point but will likely follow recent CMS directives).
The bill provides 7.2 million over two years for Community Health Centers.
It extends funding for nearly two dozen other programs – including federal abstinence programs and extra payments for rural hospitals.
The Children’s Health Insurance Program (CHIP) will receive $5 billion for two years.
It increases the Medicare Part B and Part D income-related adjustments for premiums for high-earners.
In 2020, it requires Medicare Supplement policyholders to pay for the Medicare Part B deductible (currently $147/year) themselves. This eliminates “first dollar coverage”. And, this also means that the Medicare Supplement plan offerings (Medigap coverage chart) would also have to be revamped at some point to account for these changes. Plans F and C would likely be eliminated for new policyholders starting in 2020. If the past is any indication, current Medigap policyholders will be “grandfathered in” and allowed to keep their plans even if it includes first-dollar coverage. However, at that point (2020) or maybe before, there would likely be a considerable amount of rate pressure on people in first-dollar coverage plans, as there would be no “new” policyholders coming into those plans.
The overall cost of the bill is approximately $210 billion, with two-thirds of that being added to the Federal deficit and the remaining $70 billion in cost being split between Medicare recipients and providers.
Lastly, a previously scheduled hospital payment increase of 3.2 percent – scheduled for 2018 – will be delayed and spread over 6 years.

So, how will this, particularly the change in Medigap design, impact you? In 2010, the Medigap plans were revamped to include several new plans and remove several duplicate plan designs. When that happened, policyholders that had one of the “old” plans were allowed to keep their plan. It is very likely this would be the case with this plan design change as well; however, that will be something to keep an eye on. Obviously, the 2020 start date of this requirement gives plenty of time – even at Government pace – to revamp the coverage chart and implement the changes.

Also, the “doc fix”, which “permanently” replaces the sustainable growth rate should provide some stability to providers who accept Medicare patients and payments. This elimination of payment amount uncertainty is always, ultimately, a good thing for Medicare recipients. It is expected the President Obama will sign the bill into law within the next couple of days.

Garrett Ball is the owner of Secure Medicare Solutions, an independent Medicare insurance brokerage. If you have any questions about this or want additional information about current Medigap plans, please contact SMS at 877.506.3378 or online.

Filed Under: Medicare insurance news, Medicare News, Medigap Plans, Secure Medicare Solutions, Uncategorized · Tagged: 2020 medigap plans, doc fix, medicare, medicare news, medigap, medigap news, obama, SGR, sustainable growth rate

Apply for Mutual of Omaha Medigap Online

April 6, 2015 by Garrett Ball · Leave a Comment

Mutual of Omaha, one of the leaders in the Medicare marketplace, has made it even
easier to research Medicare Supplement options and get a quote online. In the past, you would have to spend hours on the phone or in person meeting with agents to discuss Medicare Supplement options. However, that’s not the case any more.

You can now research online, get quotes, and when you’re ready, even apply for a Medicare Supplement online at: http://ApplyForMedSupp.com/NZK949. This site enables you to compare the plan benefits, see quotes and make an informed decision. This is now available in 8 states with more states being added weekly.

The statistics show that people aging into Medicare increasingly want the flexibility of “shopping” for Medigap online. Doing it this way allows you to understand the plans on your own time, but it still gives you the flexibility and resource of consulting with a licensed agent if you have any questions along the way.

Medicare Supplement plans are Federally-standardized, so each company offers the same coverage options. The differentiating factors are price and company reputation. Mutual of Omaha is one of the leaders in this market, remaining one of the most competitively priced options, and they have an ‘A+’ AM Best rating.

If you have questions about this or want to speak to someone directly, you can call us at 877.506.3378.

Filed Under: Medigap Plans · Tagged: apply, apply for mutual of omaha medigap online, medigap, Mutual of Omaha, online, plan g, quotes

Household Discounts for Medigap Plans

April 6, 2015 by Garrett Ball · 5 Comments

Medigap companies are always looking for a competitive “edge” in the market place.
One of the most recent trends is the inclusion of the household discount that most companies now offer. Although these discounts range from 5% to 12%, they can have a significant impact on which company is right for you.

The biggest change, in recent months, has been the inclusion of the discount for people who share a household with another adult, regardless of whether that other adult has the same insurance policy. In other words, you can qualify for the discount (with many companies), just based on being married or living with another adult. In year’s past, you would have had to both sign up for the same insurance company/plan. Now, that is not the case with many companies.

Some of the companies that offer some form of household discounts now include Mutual of Omaha, Aetna, Medico and Equitable to name a few. These discounts range from 5% to 12%, depending on the company and where you live.

As you may already know, Medicare Supplement plans are Federally-standardized. So for example, a Plan F with one company is the same as a Plan F with another company. Price and company reputation are the only differentiating factors between companies, so it is important to compare based on premium.

If you have not compared your Medicare Supplement coverage lately, it is a good time to do so. Not only is there the new revamped calculation of the household discount available through many companies, but there are also several newer, very competitively priced companies in the Medicare Supplement market. Several of these are large companies that have “repriced” their plans, while others are well-established companies that have ventured into the large and expanding Medicare market.

If you have questions about this or would like a quick quote via email, you can call us at 877.506.3378 or request information at Medigap quotes.

Filed Under: Medicare insurance news, Medigap Plans · Tagged: household discounts, medicare, medigap, medigap rates, plans, quotes, supplement

Medicare Supplement Enrollment Continues to Grow

January 15, 2015 by Garrett Ball · Leave a Comment

Medicare supplement enrollment continues to grow,
according to marketplace data released in 2014 by Mark Farrah Associates. The study found an increase in number of Medicare supplement policies from 10.2 million to 10.5 from 2012 to 2013, an overall increase of 3.8%. These figures also represent a notable growth in new policies. This entails policies that are issued in the last three years, and this growth is measured at 1.3% from 2012 to 2013.

Most project these study results are a result of two distinct trends in the Medicare marketplace. One, they represent the increasing numbers of Medicare eligible individuals as Baby Boomers turn 65 at a clip of 11,000 per day. Secondly, most suspect these numbers reflect a move away from other coverage types, both by choice and necessity, as there are fewer Medicare advantage plan options and more employers are reducing or eliminating coverage for retirees. Overall, the last five years have seen an overall growth in the Medicare market of over 11% in number of issued policies.

The study also found that Plan F was purchased by 52% of people purchasing Medigap plans, a large number when you consider that plan F is not always the best “deal”. These numbers, I believe, also are affected by the fact that several of the larger Medigap insurers “push” plan F as their primary option. Plan G and Plan N did also grow, according to the study, in number of Medigap enrollees. Early evidence suggests that, once 2014 data is available, we will see a leveling off of Plan F enrollments and an uptick in enrollments in Plans G and N.

So, how does all this information affect you? One, it is important to know what the marketplace looks like if you are a participant in the marketplace (i.e. a Medigap policyholder). Also, it gives you an idea of how your choices compare to what the market as a whole is doing.

If you have questions at any time about your plan, your options, or anything else regarding Medicare, please do not hesitate to contact me at 877. 506. 3378 or on our website.

Filed Under: Uncategorized · Tagged: how many people have plan f, Medicare Advantage, medicare supplement, medicare supplement enrollment, Medicare Supplement plans, medigap

Last Chance – Medicare Advantage Disenrollment Period (MADP)

January 14, 2015 by Garrett Ball · Leave a Comment

The Medicare Advantage Disenrollment Period is the last chance for those in a Medicare Advantage plan to get out of their plan. This period runs from January 1 through February 14 of each year. During this time period, you can get out of a Medicare advantage plan and return to original Medicare. If you do not take any action of February 14, you are locked into your Medicare advantage plan for the remainder of the calendar year.

If you have a Medicare advantage plan that includes prescription drug coverage, you can also pick up a stand-alone part D plan upon returning to original Medicare. In addition, at the same time, during this Medicare Advantage Disenrollment Period, you can also add a Medigap/Medicare supplement plan at the same time.

This can be an important time for those who are in a Medicare Advantage plan and did not realize the changes that their plan was making for 2015. It is also useful for those who have ongoing medical concerns that may make being in a more comprehensive plan advantageous. Lastly, it can be useful for someone who’s doctor either no longer takes Medicare advantage plans or does not take your particular plan. It is, in essence, a last chance to get out of your current plan for this year.

Medicare advantage plans do change each year. So, it is important to stay apprised of those changes and how they may affect you. Medigap/Medicare supplement plans do not change coverage-wise on a year by year basis. Additionally, these plans do not have networks and are, in general, more flexible across state lines.

To view the coverage chart that shows what Medigap plans cover, you can see it here.

To get more information on the Medicare Advantage Disenrollment Period, or find out whether it makes sense for you to make changes during it, you can contact us at 877. 506. 3378 or via email.

Filed Under: Medicare News, Medigap Plans · Tagged: changing from an advantage plan to a supplement plan, Medicare Advantage, medicare advantage disnerollment period, medicare supplement, Medicare supplement quotes, medigap, medigap quotes, when can you change medicare plans

Help! Losing Medicare Advantage or Employer Coverage

September 26, 2014 by Garrett Ball · Leave a Comment

This time of year, every day there is a new Medicare Advantage plan termination or employer-sponsored group health plan termination announced. This can be intimidating and scary for someone who is losing Medicare Advantage or employer/group coverage. We field hundreds of questions about this annually, with some of the common questions being why is my plan ending, what can I do about it, or what are my options. This article should answer those questions clearly and concisely. If you prefer to speak to an adviser directly about your specific situation, you can call us at 877.506.3378 or email us at garrett@securemedicaresolutions.com.

First and foremost, you should understand what type of plan you have now that is ending. If you have a Medicare Advantage plan, this type of coverage is a privatized version of Medicare offered through private companies but run on a year-by-year (calendar year) basis with the Federal Government’s Medicare program. So each year, some of these plans will be renewed by the companies that sell them, and other plans will be dropped or changed.

If you are losing Medicare Advantage coverage, you will be notified by October 1 of that change and your entitlement to a special election period to choose another Medicare Advantage plan or an actual Medicare supplement (Medigap) plan on a ‘guaranteed issue’ basis. If you take no action, you will be returned to Medicare Parts A and B and you will have that for the calendar year 2015. It is important to understand that, just because you you are losing Medicare Advantage coverage, it does not mean you are going to have ‘no coverage’ for the following year. First of all, you will be reverted back to Medicare (at the worst). Best case scenario, you can get a much more comprehensive coverage plan (Medicare Supplement/Medigap) on a one-time ‘guaranteed issue’ basis. Normally, you have to ‘qualify medically’ for this type of coverage, but you do not have to do that when you are losing Medicare Advantage coverage because the company is terminating it.

If you want to compare the other Advantage plans in your area or look at Medigap as a more stable alternative, you can contact us at 877.506.3378 or at garrett@securemedicaresolutions.com.

If you are losing an employer-sponsored group plan, as many large employers are doing over the past few years, your situation is very similar but does have some unique aspects. For example, if you are a General Electric retiree (GE) or AT&T retiree that is losing coverage this year, there are better options besides what are presented with from your company.

The trend now for many of the large companies that are ‘cutting off’ insurance benefits for their retirees is to hire these ‘middlemen’ companies like AON, Extend Health, etc. These third-party companies are financially incentivized to place you in certain plans, and their stake in this is often tied (financially) to your former employer. If that seems like a conflict of interest, that’s because it is.

If this is your situation and you have the option of using an actual independent broker to compare/choose a plan, we would highly advise doing so, regardless of whether that is us or someone else. Besides the aforementioned conflict of interest, you would also be dealing with a more qualified, informed agent when using an independent brokerage (business owners vs. hourly call room employees). Moreover, an independent brokerage is equipped and able to offer support, answer questions, etc. after you are enrolled in a plan.

In working with retirees from these two companies already this year, we have seen some of the plans being presented/recommended and would strongly recommend that you explore your other options rather than get stuck with a $150+/month Plan F.

If you are losing employer-sponsored group coverage, you are entitled to a ‘guaranteed issue’ situation, during which you can choose a Medigap plan without medical underwriting. It is important that you choose wisely during this time, as you would have to ‘qualify’ medically to choose a plan or change plans later.

If you have questions about any of this information or if we can help alleviate your concerns about this transition, please call us at 877.506.3378 or contact me at garrett@securemedicaresolutions.com.

Filed Under: Health care reform, Medicare insurance news, Medicare News, Secure Medicare Solutions · Tagged: advantage plan, alternatives to AON, alternatives to Extend Health, aon, AT&T, extend health, GE, general electric, Guaranteed Issue, how to sign up for medigap, losing my advantage plan, medicare, medigap comparison, supplement, supplemental

Medicare Annual Election Period is Almost Here

September 26, 2014 by Garrett Ball · Leave a Comment

We are approaching the annual election period for Medicare plans. This period runs from October 15-December 7 this year. Plan changes made during this period will take effect on 1/1/15 and will be in place for the following calendar year of 2015.

Contrary to popular misconception, this period has nothing to do with Medicare Supplement (Medigap) plans. It only applies to Medicare Part D and Medicare replacement plans like Medicare Advantage. If you have a Medigap plan, you do not have to do anything to renew your plan – it will continue automatically and is “guaranteed renewable”. This type of plan does not change annually like Medicare Advantage plans do.

However, if you do have a Medigap plan, it may be a good time to review your coverage to ensure that you have the plan that is most advantageous to you. Medigap plans are Federally-standardized, so every company provides the exact same coverage plans. It is highly likely, if you have had your plan for more than a year or two, that you are paying above market price for your Medigap premium. If you want to reevaluate your plan and compare it to what is available in your zip code, you can contact us here to get a comparison via email.

If you are on a Medigap plan with prescription drug coverage (Part D), it is also a good idea to reevaluate your Part D plan. Part D is offered on an annual contract, so these plans do change each year. Sometimes, the changes can be very significant. Also, many times, your prescription medication needs change, so it is a good idea to stay apprised of the options on Part D on an annual or bi-annual basis.

You can do this Part D comparison on Medicare’s website at http://medicare.gov. If you are one of our clients, please contact me directly as we provide this comparison as a free service for you.

If you have questions about this Medicare annual election period, please feel free to contact us at 877.506.3378 or online at Secure Medicare Solutions.

Filed Under: Medicare News, Medigap Plans, Part D · Tagged: Annual Election Period, compare part d, how to change medigap plans, medicare, Medicare Advantage, medigap, Open Enrollment, Part D, quotes, supplement, supplemental, when can i change medigap plans, when is medicare open enrollment

Medigap Pricing Methods – Attained-Age, Issue-Age and Community-Rated

June 25, 2014 by Garrett Ball · Leave a Comment

Medigap pricing methods can be categorized in one of three ways (as found on page 17 of the Choosing a Medigap policy booklet) – attained-age rated, issue-age rated, and community-rated. These differences are often discussed by insurance companies and agents, so it is important to understand what the terms mean, and more importantly, what they may mean to your Medigap rates in the future after you choose a plan.

Attained-age Medigap rates are based on your current age (i.e the age you have “attained”) and rates typically would go up as you get older based on your age or when you reach a birthday. Plans that are rated in this way will typically have lower rates initially when you sign up for a plan and will represent some savings (often significant savings) on the front end.

Issue-age Medigap rates are based on your age at the time that the policy is issued. Rates will be lower if you buy when you are younger. Premiums still go up over time, but it is just not based on your age. Instead, premium increases are based on inflation, claims experience and other factors.

Community-rated Medigap rates are based on the “community” (a certain geographic area) and are typically the same for everyone within that “community”, regardless of age. Just like issue-age rated plans, premiums still go up over time, just not based on your age. Instead, they go up for inflation and claims experience of everyone within that “community”.

So, what do Medigap pricing methods mean to you? First of all, a few facts about the different rating methodologies and things to keep in mind.

All Medigap rates are going to go up periodically. Most (regardless of Medigap pricing method) go up each year.
In some states, the vast majority of plans are attained-age rated, with only 1-2 exceptions to that.
In other states (for example, Georgia Medigap plans), the state restricts the companies to offer plans rates only with certain rating methodologies (i.e. no attained age in GA).
It is important to also consider the savings on attained-age plans. For example, if you can save $1000+ a year for the first 10 years of an attained-age plan, even if the rate eventually surpasses an issue-age plan, your already-pocketed savings on the front end are so significant, that may not matter.
Lastly, and most importantly, keep in mind that you can always change Medigap plans at any time and for any reason. In some states (for example: CA, OR, NY), this is a “guaranteed issue” right with no underwriting. In other states, you may have to answer general medical questions to be eligible to change. But in most cases, you can change plans to a lower-priced plan if your rate has gone up significantly.

Overall, it is advisable to have the assistance of an independent broker who can give you information about both current rates and typical future rates (i.e. history of rate stability) so you can make an informed choice on which company/plan is going to be best for you, both in the short term and into the future.

If you have questions about this information or Medigap pricing methods in general, you can contact us at 877.506.3378 or contact us online.

Filed Under: Medigap Plans · Tagged: attained-age rated, choosing a medigap plan, community rated, how to choose a medigap plan, issue-age rated, medicare, medigap, medigap plans, quotes, rating methods, supplement, supplements, which pricing method is best for medigap plans