Medicare Supplement Insurance

First for those of you who do not know, an Advantage plan, is different than a supplement plan. Advantage plans are managed through a companies network of providers. If you HAVE to get your service from an approved provider unless it is an emergency. What most don’t realize is that your Medicare Part A & B are now controlled by the company you get your plan from, not you. Yes you just gave your control over to your health care company.

Here at Medicare Supplement Direct we do not promote advantage plans. Call us to get our free report “The 7 things you MUST know before you buy”.

No back to what I wanted to write about. If you read the news and have seen how several members in congress want to reduce funding of Medicare Advantage Plans. Why? Because a recent government study showed that insurance companies on average were being paid an additional 13% above the cost of traditional Medicare.

What could happen because of this? There are several things that could happen.

Lets think about this one first, if it is more profitable for them, which do you think they are going to promote more? Your right, the Medicare Advantage plan. This is why all the TV commercials you see are for advantage plans even though they each have their own program name ” Humana Gold” etc. They make more money and reduce your options.

Now that you know that plan is more profitable, lets dig a little deeper.

What if Congress approves a reduction in funding? One is that once the funding is reduced, insurance companies might withdraw from the Medicare Advantage market since it will become less profitable. Another most likely result would be higher premiums for Medicare Advantage insureds. Premiums might be raised to offset the decrease in funding (Currently companies in Missouri receive $776 per month).

Lastly, benefits could be reduced. Plan copayments and out-of-pocket maximums would be raised to move more responsibility toward the insureds.

Medicare Supplements are great products for seniors offering access to more doctors and hospitals in most cases than Medicare Advantage Plans and also lower out of pocket costs when receiving medical attention in many cases. Make sure you study all the facts before you buy.

Posted under Medicare Advantage