Medicare Supplemental Insurance

Posts Tagged ‘MA’

From the Pacesetter magazine from Genworth Financial Aug/Sep 2008

Congress overrode the President’s veto to pass the Medicare Improvements for Patients and Providers Act of 2008 into law on July 15, 2008.  The main focus of this bill was to eliminate the planned 10.6% decrease in payments to doctors, but the act also contained a number of changes for Medigap and Medicare Advantage (MA) plans.

Starting in June 2010, there will be a number of changes to Medigap policies as recommended by the National Association of Insurance Commissioners (NAIC):

• Plans E, H, I, and J, will no longer be available.
• Two new plans (M & N) will be implemented with higher cost-sharing and lower premiums.

MA plans will also undergo a number of changes:

• Marketing of MA plans will be significantly restricted. Cold calling, marketing at educational events, and offering meals to seniors are prohibited.
• The Centers for Medicare and Medicade Services are requiring MA plans to limit compensation paid to agents to incent agents to enroll seniors in the plans that best meet their needs.
• Payments to MA plans were cut by $12.5 Billion over 2009-2013.
• Private-fee-for-service MA plans are required to build provider networks by 2011 and to have Quality Improvement plans by 2010.

We believe that the changes liste above will be good for seniors and the Medigap market.  There is another planned decrease in pyaments to doctors (20%) scheduled for 2010.  That will open the door to more potential changes to Medigap and MA plans. Stay tuned…

***NOTE***

Those of you currently on a plan that is to be eliminated, will continue on your plan, and you will not see any changes.  After the regulation takes place, no new business will be allowed into those plans.  If you have any concerns, please call us!.