Medigap plans protect you against financial catastrophe – why not take some small actions to help protect Medigap plans, with the goal being to preserve Medigap plans’ existence in current form for yourselves and future Medicare-eligible individuals. There has been discussion off and on over the last 2-3 years about reforming Medigap plans. These discussions have ranged from eliminating first-dollar coverage (i.e. Plan F) to overhauling the plans completely to creating a Medicare deductible that cannot be insured against. While none of these plans became a part of PPACA (“Obamacare”) and none have been enacted, it is still important to be apprised of the fact that they have been discussed and likely will be discussed again soon.
First of all, to reiterate, nothing HAS changed with Medigap plans and the way they work as a result of PPACA
(“Obamacare”). On the contrary, Medicare Advantage plans were affected considerably, with reductions in funding and new regulations/restrictions. For Medigap plans, there were discussions that included changes to these plans, specifically the Kerry-Stark bill which would have forced Medigap plans to abide by the Medical Loss Ratios that the PPACA included for “under 65” plans. This would have made it difficult for most Medigap companies to compete and, most analysts agree, would have had a detrimental effect on Medigap rates. This and other ideas got pushed to the “backburner” during the PPACA talks and health care reform went forward without including them.
Now, however, is not the time for people who care about having the ability to purchase Medigap plans to fall silent and relax. The Partnership to Protect Medigap is one organization that is non-partisan and works to protect the Medigap plans that so many rely on. You can find out more here: Partnership to Protect Medigap. On their site, you can find out more about protecting Medigap plans and their viability into the future, as well as get information on contacting your Congressional representative and other ways to be involved in these efforts.
Medigap plans provide many benefits for those on Medicare, supplementing Medicare’s sometimes-insufficient coverage and “capping” (or eliminating, in the cases of Plan F) the total out-of-pocket expenses someone would have, regardless of the amount of care needed. Additionally, they provide the security of automated billing (i.e. no paperwork) and flexibility (can go to any doctor that takes Medicare). An independent American Viewpoint independent study found that over 90% of seniors were satisfied with their Medigap coverage. This is one of, if not the, highest among various insurance niches. For these reasons and more, those who have vested interest in Medigap should make the minimal efforts required to protect the future viability of these plans.
If you have questions about this or want to discuss in more detail, contact me online or call 877.506.3378.