It will come as no surprise to many that the future of Medicare Advantage plans appears quite grim. Although 2012 may not bring some of the rate increases predicted as the government uses a bait a switch technique to pass health care reform, then not complete the cost savings measures promised. Unfortunatly its just more politics and Medicare Advantage plans are still in the crosshairs of governmental budget cuts. With their future uncertain, changes are looming and they could have significant impact on Medicare Advantage Plans in 2012 and beyond.
Eventually it is proposed that Medicare Advantage insurers will have reimbursement cut by as much as 14%. With a delay of these cuts (at this time) for 2012 the Majority of these cuts may simply be imposed in plan years coming in plan years 2013 and 2014. Medicare Advantage HMO and PPO plans will likely have to raise premiums and decrease benefits to the tune of about $100 per month!
Once cuts are fully implemented by 2014 any cost savings that was intended to make Medicare Advantage plans more affordable will shrink drastically, if any remains at all. Considering that Medicare Advantage will be overshadowed by the ease, acceptance, and freedom to see any provider like the more traditional Medicare Supplement plans (Medigap), Medicare Advantage plans will offer little if any real advantage.
Many already have swithed to Medicare Supplement Plan N as a very reasonable alternative to Medicare Advantage. Factoring in co-pays, coinsurance (Associated with Medicare Advantage plans), referrals to see specialists, and the higher premiums, it dosn't seem that in most situations Medicare Advantage will be a wise selection over Medicare Supplement - Especially with the new plans M & N introduced this year. The net result: Medicare Advantage plans will become virtually insignificant and inappropriate for most Medicare Advantage Plan enrollees. . For individuals currently on Medicare Advantage Plans they should strongly consider taking Advantage of the guaranteed issue provisions available if/when your Medicare Advantage Plan is terminated by the insurer. This provision last only 63 days from the final day of the Medicare Advantage plans coverage. For “premium” conscious individuals the Medicare Supplemental Insurance plan N may be a good choice. But be careful, there may be unforeseen rate increases lurking in some provider plan “N”s. For all: plans “F”, “G”, “C” should strongly be considered. For Assistance and advice on Medicare Advantage Plans and Medicare Supplemental Insurance go to the request page and we will have a specialist from the Senior Advisors Group help you in making an appropriate Medicare Insurance plan selection. There is no cost for their service but they do request that you use their group to enroll.
For Insurance Agents - Keep your eye on the ball! Medicare Advantage may be gone in many areas by 2014.
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Medicare Advantage Plans for 2012 & Medicare Supplemental Insurance Plans!
Medicare Supplement Plans M & N
A better choice for many Seniors
Medicare Advantage - 2012 and Beyond