Come June 1, 2010, there are going to be major changes to the Medicare, and to say that they will be confusing is likely an understatement.
“June 1, 2010, is going to be totally crazy when it comes to all the changes Medicare will be bringing into effect,” explained Richard Cantu of Gomedigap.com . The tip of the iceberg is the fact that the old plans A through G will all be tanked and replaced with new plans A through G.
However, having said that, this is the thing that will totally confuse people. The new plans A through G are exactly the same as the old plans A through G. What happens here is that people in the old plans will then be in a “closed risk pool,” and their health insurance premiums will go up.
Those in the new plans A through G will also be in a closed risk pool. “This will trigger a resetting of insurance rates and Americans will see some tough competition among insurance companies for their business, hence rates may drop,” said Cantu. Now there is a happy thought that many Americans will cheer.
Considering this major change is coming, it only makes sense to start shopping around for rates now and hedge one’s bets. Waiting until the last minute will cause everyone a great deal of frustration until they understand the concept of closed risk pools and that the new plans A through G are exactly the same as the old plans, but yet different.
If the word confusion comes to mind right about now, join the hundreds of other who are also wondering why the plans had to change, when they aren’t really changing at all. The bottom line here is that this has something to do with making health insurance more accessible to everyone by driving down the prices. This is in reference to the changes coming from the new Administration in Washington.
The future may bring some even more interesting changes. Stay tuned.