Seniors Flock to Medicare Advantage as Supplemental Insurance Rates Rise
Jan 8, 2021
A new study shows the cost of Medicare Advantage premiums decreasing, while Medicare supplements increase, leaving many wondering if they really need supplemental insurance with Medicare.
Prescott, United States - January 8, 2021 /PressCable/ —
Early estimates from new MedicareWire research shows that 2021 Medicare Advantage enrollments could be up by as much as 5.5 percent over 2020, a direct result of the increasing cost of Medicare supplement insurance, researchers said. At the same time, the annual out-of-pocket cap on Medicare Advantage plans increased by $850, putting more seniors at risk of high medical bills. The researchers found that as many as half of all 2021 Medicare Advantage plan enrollees will be in an HMO plan with an out-of-pocket maximum of $7,550, leading many to wonder if these supplemental plans are worth it.
More information can be found at https://medicarewire.com/medigap/are-medicare-supplement-plans-worth-it/
The increase in Medicare Advantage enrollment is a direct result of lower premiums on Medicare Advantage plans and increasing premiums on Medicare supplements. Since 2017, the average monthly premium on private health plans has dropped by more than 34 percent. 2021 plans have the lowest average monthly premium since 2007.
With Medicare supplement insurance rates climbing, many Original Medicare beneficiaries are comparing the monthly cost of coverage with HMO and PPO plans because the private health insurance option appears to cost less. “Our fear is that many seniors will get into financial trouble by switching to Medicare Advantage,” says David Bynon, founder at MedicareWire. “What most people don’t take into account, particularly new retirees is that many healthcare costs, especially hospitalization, can cost a lot more with Medicare Advantage.”
To help Medicare beneficiaries understand their true costs in Medicare and the type of insurance that will work best for them, MedicareWire offers a rate analysis and coverage service. The service was designed to help seniors and people with disabilities find a plan and insurance carrier with the lowest-cost plan available in their area that will meet their needs.
Kaiser Family Foundation research confirms the MedicareWire researcher’s claim that Medicare Advantage plans can be quite costly for some people, particularly those with chronic health conditions. What Kaiser discovered is that about 50 percent of beneficiaries enrolled in Medicare Advantage would have higher healthcare costs than those with Original Medicare for a 5-day hospital stay.
Medicare supplements, which pay some of the gaps in Original Medicare, including deductibles, copays, and coinsurance, are the premium option for seniors. Unlike HMO and PPO plans, there are few restrictions with Original Medicare and a supplement. But, the Centers for Medicare and Medicaid Services’ official literature, the “Medicare & You” handbook, tends to favor Medicare Advantage plans by over-selling annual limits, appeal rights, and statements that downplay Medicare Advantage issues.
“People frequently ask me are Medicare supplement plans worth it?”, says Bynon. “My answer is nearly always the same. You can’t predict when you will get critically ill or have a serious accident. But you can predict your healthcare costs with Original Medicare and a Medigap policy. So, yes, they are worth it.”
For healthy seniors, who rarely use healthcare services, Medicare Advantage offers excellent cost savings. But, when you come down with a chronic illness that requires regular care, including periods of hospitalization and skilled nursing for recovery, the bills stack up very fast. Many people simply are not prepared for the costs.
MedicareWire’s researchers are quick to point out that many Medicare Advantage plans lure people in with extra benefits, like prescription drug coverage, dental, vision, and hearing, and they appear to lower to have costs. But, when you dig deeper you quickly discover that most plans with zero-dollar premiums have high out-of-pocket limits, high copays, and the additional benefits have strict limits. Most dental coverage, as an example, is limited to $500 per year and does not cover all services.
All Medicare Advantage plans are required to publish a “Summary of Benefits” document that explains in reasonable detail what a plan offers and the costs members pay for all services. “Unfortunately, it’s nearly impossible to find the plan benefit documents for many plans. I have no idea why some plans make it so difficult,” says Bynon. “This is just one of the reasons that MedicareWire offers downloadable PDF files with plan cost details.”
One of the reasons it is so difficult to compare the cost of Medicare Advantage plans with Original Medicare and supplemental insurance is that it is impossible to put Medicare Advantage coverage into a chart as you can with Medigap plans. A comparison program is needed to assist people in making the best choice based on their personal health and financial situation.
Contact Info:
Name: David W Bynon
Email: Send Email
Organization: MedicareWire
Address: 101 W Goodwin Street Unit 2487, Prescott, AZ 86302, United States
Phone: +1-855-266-4865
Website: https://MedicareWire.com
Source: PressCable
Release ID: 88992748
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