2010 Medicare Advantage Plans Will Likely Increase Plan Member Out-Of-Pocket Expenses
2010 Medicare Advantage Plans Will Likely Increase Plan Member Out-Of-Pocket Expenses
If you are in your 60′s (or care for someone who is), read on for important information!
This year Medicare recipients are faced with another challenge. The Federal government has announced funding reductions for Medicare Advantage Plans. This leaves the approved private companies administrating the Medicare Advantage Plans with difficult choices. They can:
a. Leave everything as is and reduce their profits,
b. Increase monthly premiums for the plans,
c. Reduce and/or cut certain benefits and
d. Increase the plan out-of-pocket expenses as well as what qualifies for such.
Unfortunately, most Medicare Advantage members will be paying much higher out-of-pocket expenses in 2010 versus 2009.
Medicare is a Federal health insurance program which covers eligible beneficiaries age 65 and older as well as qualifying beneficiaries receiving social security disability. The Center for Medicare and Medicaid Services (CMS) provides Medicare beneficiaries the opportunity to make changes to their Medicare plans during the Annual Enrollment Period (AEP), from Nov. 15th through Dec. 31st of each year.
People often talk about Medicare as if it were one product. There are actually four parts to the Medicare program.
Part A helps to cover hospital expenses
Part B helps to cover medical expenses
Part C Medicare Advantage Plans
Part D Medicare-sponsored prescription drug plans
Medicare recipients can also purchase Medicare Supplement Insurance coverage, to help pay some of the health care costs that the Original Medicare does not cover.
The Medicare Advantage (like HMOs and PPOs) is Medicare approved and administered by private companies and provides all of the Part A (hospital) and Part B (medical/doctors office) coverage. By joining one of these plans, the Medicare recipient is still part of the Medicare program. These Medicare Advantage Plans do have some criteria that needs to be met in order to join them. They do not all offer the same level of benefits and cost share / out-of-pocket expenses. Medicare Advantage Plans generally offer extra benefits, and many include Medicare Part D, the prescription drug coverage. These plans often have medical networks, which mean that you may have to see doctors who belong to the plan or go to certain hospitals to get covered services. In many cases, your costs for services can be lower than in the Original Medicare, but it is important to check with the plan as the costs for services may vary greatly amongst the plans.
Each person is different and has different medical needs and prescription drug requirements. Without doing the proper homework, Medicare recipients could be exposed to unnecessary costs by selecting the wrong plan. Many do not research the prescription drug costs and fall in the coverage gap (donut hole), or they do not consider their lifestyle in their plan selection, eg. Original Medicare has no overseas medical coverage.
For assistance in navigating your Medicare Plan Options, contact an independent benefit consultant who is contracted and certified with a broad portfolio of different Medicare plans. An independent agent will assess your individual health plan needs and help you select the best plan for you.
For more information about this subject, contact Pardeep K. Vedi C.I.C. at American Insurance at 407-678-7747 or e-mail agent@insurancesavers.com
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