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President Obama Taxes Seniors Medicare Supplement Insurance Plans

March 5, 2012 by Charles Bailey

The President’s proposes triple taxation on some Medicare supplement Insurance owners.

The Presidents 2013 budget proposes to increase premiums by 15% for higher income beneficiaries. This is beyond the current premium surcharge for higher income beneficiaries. Second, the President proposes to increase the annual Part B deductible by $25 for new beneficiaries, and third, charge a 15% excise tax for certain Medicare supplemental insurance plans (I.E. Medicare Supplement Plans “C”, “F”, potentially “G” and others) increasing those premiums by about $400 annually.

The government would collect the surcharge by adding an amount equal to about 15% of the average Medigap policy premium onto a Medigap policy owner’s Medicare Part B premium. The administration has included the proposal in a federal fiscal year 2013 budget proposal. Fiscal year 2013 starts Oct. 1; the new Medigap surcharge would take effect in 2017.

Here’s the excerpt from the president’s budget:

Introduce Part B Premium Surcharge for New Beneficiaries Purchasing Near First Dollar Medigap Coverage: Medicare requires cost sharing for various services, but Medigap policies sold by private insurance companies provide beneficiaries with additional coverage for these out-of-pocket expenses. Some Medigap plans cover all or almost all copayments, including even modest copayments for routine care that most beneficiaries can afford. This practice gives beneficiaries less incentive to consider the cost of services, leading to higher Medicare costs and Part B premiums. This proposal would introduce a Part B premium surcharge for new beneficiaries who purchase Medigap policies with particularly low cost-sharing requirements, effective in 2017. Other Medigap plans that meet minimum cost sharing requirements would be exempt from the surcharge. The surcharge would be equivalent to approximately 15 percent of the average Medigap premium (or about 30 percent of the Part B premium). [$2.5 billion in savings over 10 years]

Increase Income-Related Premiums Under Part Band Part D: Under Medicare Parts B and D, certain beneficiaries pay higher premiums based on their higher levels of income. Beginning in 2017, this proposal would increase income-related premiums under Medicare Parts B and D by 15 percent (income related premiums would range between 40 percent and 90 percent depending on a person’s income) and maintain the income thresholds associated with these premiums until 25 percent of beneficiaries under Parts B and D are subject to these premiums. This proposal will help improve the financial stability of the Medicare program by reducing the Federal subsidy of Medicare costs for those beneficiaries who can most afford it. [$27.6 billion in savings over 10 years]

Find low cost Medicare Supplement Insurance in Georgia; Other States Medicare Supplement Insurance

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Mutual of Omaha discontinues Medicare Supplement Plan N

April 15, 2011 by Charles Bailey

Mutual of Omaha recently announced that they will no longer offer Medicare Supplement Plan N as of April 22nd, 2011. They gave no reason for the sudden change only that it was done “after careful consideration”. Existing Mutual of Omaha plan “N” clients may keep their policy or replace it with another plan N offered in their state. Of course normal underwriting and other applicable conversion rules would apply. As always the Senior Advisors Group stands by their clients and will assist all Medicare beneficiaries in finding a suitable replacement if appropriate. If you need advice for Mutual of Omaha, or other Medicare Supplemental Insurance providers you can contact the Senior Advisors Group for assistance.

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Medicare Advantage Season Starts Monday, November 15th

November 15, 2010 by Charles Bailey

The Annual Enrollment Period for 2011 Medicare Advantage plans Starts today. Consumers should be aware of a few important changes coming to Medicare Advantage. First, the lack of an “Open” Enrollment for 2011 from January 1st – March 31st. The Open Enrollment from 1/1/11 through 3/31/11 has been replaced by an Annual Dis-enrollment Period from January 1st to February 14th, 2011. In the new redefined period the only option for a Medicare Beneficiary enrolled in a Medicare Advantage plan will be to return to Original Medicare (and a stand alone Rx plan). This is different from past years when Medicare advantage enrollees could make one change/switch to a different Medicare Advantage plan during this period.

Another commonly confused detail regarding the annual enrollment period is there is no enrollment period for Medicare Supplemental Insurance. You may change a Medicare supplement policy at any time. This year many of those over 65 are choosing Medicare Supplement plans over Medicare Advantage. Some reasons include the freedom from networks in Medicare Supplement, the better benefits, and the new Medicare Supplement plans M & N with premiums more in line with many Medicare Advantage plans. For expert advice you can consult one of the many experts at the Senior Advisors Group.

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Medicare Premiums and Deductibles for 2011

November 9, 2010 by Charles Bailey

CMS announces Medicare premiums and deductible for 2011. For people who are new to Medicare in 2011, the Part B premium will increase to $115.40/month, a 4.4% increase. Since there was no increase in Social Security for 2011, existing Medicare Part B enrolled individuals premiums will remain fixed at their previous level. Thus, in 2011 there will be 3 different amounts for Part B premium which is dependent upon when the person first started their Medicare Part B Coverage (2011 enrollees, 2010 enrollees and 2009 and prior enrollees).

The Part B deductible will increase from $155/calendar year in 2010 to $162/calendar year in 2011.

The Part A deductible will increase from $1100/benefit period in 2010 to $1,132/benefit period in 2011.

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Cigna Cancels Medicare PFFS plans for 2011

June 10, 2010 by Charles Bailey

According to Cigna the company will not renew in national Medicare Advantage Private Fee-For-Service (PFFS) contract for the plan year 2011. Cigna does plan to continue, and has filed to renew it Arizona Medicare Advantage HMO and Medicare Part D (RX) plan.

This may be the first of many announcements from Medicare Advantage providers that they will not renew plans for 2011. New rules requiring companies to establish a provider network will prompt plans in all but a few counties to eliminate PFFS plans in 2011. 

Cigna will continue to offer its comprehensive suite of employer retiree and pre-retiree solutions including group medical plans that supplement Medicare and the Cigna - Humana Medicare Alliance. 

For those losing coverage they will have an option to purchase a new Medicare Advantage plan or Medicare Supplemental Insurance plan during the Annual Enrollment period from November 15th – December 31st 2010.

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Medicare Prescription Drug (Part D) Rebate

May 6, 2010 by Charles Bailey

As many individuals are aware Beneficiaries enrolled in a stand-alone Medicare Prescription drug plan (PDP) or Medicare Advantage Plan that includes prescription drug coverage (MAPD) who reach the prescription drug coverage gap (the “donut hole”) may be eligible to receive a one-time $250 rebate from the U.S. Department of Health and Human Services (HHS).

Key Points on the $250 Part D Coverage Gap Rebate under Patient Protection and Affordable Care Act (PPACA):

According to the latest information from CMS, for beneficiaries enrolled in a stand-alone PDP or an MAPD plan in 2010: 

  • A beneficiary must first accumulated more than $2,830 in Covered Medicare Part D costs. (Exclusions do apply and are explained below).
  • Beginning on June 15th, beneficiaries who have hit the prescription drug coverage gap (or “donut hole”) prior to May 31st, 2010 will get a $250 rebate check to help them afford their medicines this year.
  • Beneficiaries who as of June 1st have reached the prescription drug coverage gap (and are eligible for the rebate) will receive their $250 rebate check later in June.
  • Beneficiaries who enter the coverage gap after June and who are eligible for the $250 rebate will be issued the payment by HHS, based on the quarter in which they hit the coverage gap. In the event that a beneficiary enters the Coverage Gap at the end of a quarter during 2010, the refund may be processed/mailed during the next quarter.
  • Beneficiaries should be reminded that the rebate checks will be processed and issued by HHS, not by their insurance provider, and HHS will issue rebates based on a beneficiary’s PDP or MAPD coverage at the time that they reach the coverage gap.
  • Who is excluded from the $250 Part D 2010 rebate?

1. Dual eligible beneficiaries who receive subsidy (“low income subsidy;” LIS) from both Medicare and Medicaid.

2. Beneficiaries with annual income exceeding the Part B income thresholds and who are exempt from LIS. This means that they have annual adjusted individual income above $85,000 or annual adjusted joint income above $170,000.

3. Beneficiaries receiving Retiree Drug Subsidy (RDS).

In the event that a beneficiary has just become dual eligible and they entered the coverage gap prior to being dual eligible, and so long as HHS deems that they are eligible for the rebate, then HHS should process the rebate according to the quarter that they entered the coverage gap.

For additional information about the $250 Part D 2010 rebate:

a) Go to www.medicare.gov.  Go to: ”What’s New for Medicare”.

b) Beneficiaries can phone Medicare directly at 1-800-Medicare (1-800-633-4227), 24 hours a day/7 days a week. TTY/TDD users should call 1-877-486-2048.

For help finding a Medicare Supplement, Medicare Advantage, and/or a Medicare Prescription Drug coverage contact the Senior Advisors Group at 610-399-8700 or follow any of the links to their website.

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Aetna Medicare enrollment halted over sanctions – Update

April 29, 2010 by Charles Bailey

The Centers for Medicare & Medicaid Services (CMS) has imposed intermediate sanctions on Aetna suspending the enrollment of and marketing to new members of all Aetna Medicare Advantage and Standalone Prescription Drug Plan Contracts effective April 21, 2010.
 
Some details regarding the suspension:

  • All enrollment requests received on or before April 20, 2010, regardless of the enrollment period or enrollment mechanism (i.e., paper forms, online, telephonic), for individual MA/PDP products will be processed.
  • Incomplete enrollment requests received on or before April 20, 2010, that are “in process” will continue to be processed and submitted to CMS.
  • All enrollment requests received on or after April 21, 2010, for individual MA/PDP products will be denied. Aetna will notify the potential enrollees of the denials in accordance with existing CMS guidance. 
  • Medicare Supplement enrollment is not effected by the sanctions.
  • The suspension does not affect current Aetna Medicare enrollees.

Aetna said the sanctions relate to compliance with requirements involving Medicare prescription drug plans, primarily tied to changes in the drugs covered by some plans from 2009 to 2010. Medicare is the U.S. government health plan for the elderly.

For more information on Aetna Medicare Advantage, and Aetna Medicare Supplemental Insurance  plans in your area contact the Senior Advisors Group at 610-399-8700. The Senior Advisors Group is an independent Advisors for Medicare eligible beneficiaries on Medicare Supplemental Insurance.

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