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.
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 The Open Enrollment from 1/1/11 through 3/31/11 has been replaced by an Annual Dis-enrollment Period from January 1st to February 14th, 2011.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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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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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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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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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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In the spirit of health care reform, Aetna will extend coverage to dependents on existing medical plans’ ahead of schedule. Current dependents under the age of 26 would not have to leave their plans when they would otherwise age out or are no longer full-time students (including those who would have lost eligibility effective May 31, 2010).
Many families worry about dependents losing medical coverage when they graduate from high school or college. Health care reform addresses this issue nationwide later this year, when new regulations will go into effect. Aetna has taken to this responsibly by implementing the policy ahead of schedule.
For individual and small group medical plans (as defined in state law), Aetna will continue coverage effective June 1, 2010 for dependents under age 26 currently covered on a parent’s medical plan. Aetna will not change the plan’s premium until renewal.
Regardless of whether a plan makes this change ahead of schedule, health care reform is bringing changes to all plans later this year. On or after September 23, 2010, all medical plans must cover all dependents up to age 26 (Some states may mandate coverage above age 26). More details will be available in the coming months when the federal government issues regulations instructing insurers and employers on administration procedures.
If you have questions about how this will affect individual and small group plans, please contact the Senior Advisors Group at 610-399-8700.
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As a result of the recently passed Healthcare Reform Bill there are a lot of changes coming to Medicare and Medicare Advantage plans. The most common questions to come in to our offices, in the last few days pertain to Medicare drug benefits, and Medicare Advantage Plan enrollment. Here a few select answers.
1) There will be a $250 rebate for those reaching the prescription drug “donut hole” beginning right away (2010).
2) Discounts to prescription drugs – A 50% discount on Brand drugs, beginning in 2011 for prescriptions filled while in the coverage gap. This will effectively cut the coverage gap (For Brand Drugs) by 50% in 2011. Then, phased in from 2013 to 2020 a federal subsidy of 25% of the brand-name drug cost . Finally, between 2014 and 2019, there will be a gradual reduction in the out-of pocket amount that qualifies an enrollee for catastrophic coverage.
There will also be some modifications to Medicare Advantage enrollment periods. Specifically:
3) Beginning in 2011, annual enrollment period dates for MA and Part D will be October 15th – December 7th.
4) Beginning in 2011, annual open enrollment period (1/1 – 3/31) for MA plans will be eliminated, and replaced with a new 45-day period (1/1 – 2/15) in which beneficiaries who enroll in MA or PDP plans during the AEP could dis-enroll and return to FFS. (Original Medicare only). Enrollees will not be able to change Medicare Advantage plans between 1/01 and 3/31 as allowed under current rules.
Those looking for assistance on Medicare Advantage, Medicare Supplemental Insurance, and Part D should contact the Senior Advisors Group office in your area. 610-399-8700
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Beginning June 1st, 2010 Medicare Supplemental Insurance (Medigap) will include two new choices for consumers – Medicare Supplement Plan M and Medicare Supplement Plan N.
At that time Medigap plans lettered “E”, “H”, “I”, and “J” will be eliminated as the “Preventive Care Benefit” and the “At-home-Recovery” benefit are removed and these plans become identical to other lettered Medicare Supplement plans. In addition, a hospice care benefit Co-insurance coverage will be added to all new Medicare Supplement Plans.
Current Medicare Supplement policy holders will be permitted to keep existing Medicare Supplement Insurance policies, however as of June, 2010 enrollment will cease into ALL current plans. It is not necessarily beneficial to purchase one plan over another (purchase the one that fits) because all plans purchased after June 1st will be in the “New” Medicare Supplement Plan policy design. (With the Hospice Benefit) Existing Medicare Supplemental Insurance policies (Policy holders) will be partitioned into one group, and ALL plans purchased after June will be partitioned into new policy groups.
As of this date only a few companies have announced they will offer the new plans M and N, so a qualified, independent, advisor can help you find a plan in your area. The Senior Advisors Group can save you a lot of time and effort. Distinguised from most brokers, the Senior Advisors Group represents over 30 different insurance providers. With ALL of the top Medicare Insurance providers, the top Medicare Advantage Plans, as well as most Medicare RX plans in 15 states. This is very important since most agencies represent only 1 or 2 products. The Senior Advisors Group is also very helpful in explaining the various options available today and the new plans coming next year.
For individuals turning 65 before June 2010 an independent Advisor will be able to suggest a plan today as well as provide service and alternatives when the new plans and premiums eventually become available. Caution: dealing directly with the insurance company will not save you any money as premiums are regulated by each state. And, insurance companies are not objective advisors as they can only suggest their companies plans. You may use this tool to find in your area….Medicare Supplement Plans
New Medigap Plan Design
Medicare Supplement Plan N will have similar benefits to Plan D, but there will be up to a $20 co-payment for doctor visits and a $50 co-payment for emergency room visits. This co-pay will apply after the $155 deductible is paid, so individuals in these plans will pay $155 before any “Part B ” Medical benefit is covered. Then the insured will pay (up to) $20 or $50 as a co-pay for the covered service. Medicare Supplement Plan M will not have the co-pays but will not cover the Part B $155 deductiblework, and Plan “M” will only cover 50% of the part A deducible. ($1,100 in 2010) The good news is the cost of these plans is expected to have premiums around 70% of the cost of Plan F or about 77% of current plan D. The cost of Plan M is expected to price at approximately 85% of Plan F (or 92% of current plan D).
Industry experts are enthusiastic about these changes as consumers will be attracted by the lower premiums. Unfortunately, these plans were designed by academics with zero understanding of what consumers want and we’re not certain the design will fit with consumers’ desire. I.e. these plans (M & N) don’t include the $155 deductible (equivalent to $12.50/month) nor do they include excess charges allowed by most states. This may eat up most of the savings derived by many of those selecting these plans so choose wisely.
That said; Medicare Supplement Plan N and Medicare Supplement Plan M along with the renewal of all other lettered Medigap plans will provide a real opportunity for consumers.
For plan information in your area go to Find Medicare Supplement Plans. An internal consultant from the Senior Advisors Group will help sort through the available plans, and answer questions about the best options and lowest premiums available in your area. (No salesman will visit your home)
Posted in Medicare Supplemental Insurance | Tagged Medicare Supplement Plans M and N, Medicare Supplemental Insurance | 1 Comment »
