Little-Noticed Medicare Cut Will Cause Medigap Premium Sticker Shock Wildly Unpopular, Says Recent Survey By The Senior Citizens League
A little-noticed Medicare cut is likely to subject roughly 10 percent of beneficiaries to sharply rising Medigap supplement premiums, warns
The legislation closes the two most comprehensive and popular Medicare supplement policies-- Medigap plans "F" and "C" -- which provide first dollar coverage, to new customers starting in
"Beneficiaries currently enrolled in Medigap plans F or C will be able to keep their policies," Johnson explains. "However, premiums are likely to undergo sharp increases because the plans won't be taking in any more younger, healthier people to spread the risk," she says. "As people remaining in the plans get sicker and older, they use more medical services, and Medigap Plan F and C premiums are likely to increase sharply --something that Medigap customers need to consider," Johnson notes.
Medigap policyholders cannot easily compare plans and switch to less expensive supplements annually, like younger people shopping on the federal health exchange, or even other retirees shopping for Medicare Advantage plans. "Universal coverage guarantees for pre-existing conditions don't apply to Medigap supplements like they do for Medicare Medicare Advantage plans," Johnson explains.
Most Medigap supplements are purchased when the consumer first becomes eligible for Medicare at age 65. During the 7 - month Medicare initial enrollment period, Medigap insurers must accept applicants regardless of health. Later on, if policyholders want to switch from Medigap F or C to another Medigap plan, the insurance company will check health records, and consumers could face lengthy coverage exclusions, or be turned down altogether based on pre-existing conditions.
Currently, more than half of all people shopping for a Medigap policy purchase either plan F or plan C, which provide for the most comprehensive coverage, including coverage of the Part B deductible. The Part B deductible is
"People turning 65 and enrolling in Medicare need to know about the change in order to make better decisions, but the decision making process is daunting enough as it is," says Johnson.
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Read the full story at http://www.prweb.com/releases/2018/04/prweb15382770.htm
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