The more things change, the more they seem to – well, at one time that old saying ended with “the more they remain the same.” This however can’t actually be said of the coming changes to the Medicare system in 2010. This one change will rock your world if you happen to be 65 and over or under 65 and on Medicare disability.
Well Care and Coventry, two of the largest companies in the Medicare health insurance business will no longer be offering Medicare Advantage in 2010. Yes, they will be totally out of business, as they can no longer afford to offer the Medicare Advantage plan. Why is that? This is because the government is reducing the amount of money paid to companies who offer Medicare Advantage.
If you think that might not affect too many people, think again, as just Coventry alone handles Medicare Advantage benefits for over 318 thousand individuals. Suffice it to say that tens of thousands of Medicare Advantage recipients will be wondering what hit them. Well, and also wondering what they are going to do with the demise of the Medicare Advantage plan.
One thing you will need to know is that you will be guaranteed issue for 63 days once your Medicare Advantage plan(s) are no longer in effect. However, in order to get a jump on planning for the future, make the smart move and talk to a local health insurance agent now. Choose one that knows their plans intimately and will be able to walk you through what other alternatives you may have.
While the ink is not dry on this particular change for the future, it very much looks like, even though there may be some other alternative offered to those who will lose their Advantage plan(s), the alternatives may be more expensive and have higher premiums.
Those between a rock and a hard place would be best to start checking out Medicare supplement alternatives as soon as they can, and also making it a point to talk to a knowledge health insurance