It isn’t that just one or two things will be changing in the near future in the health care system, it’s a whole bunch of things that will cause a cascade of confusion amongst those who have Medicare supplements, Medicare Advantage and the list continues to grow as more planned changes are announced by the White House.
When change starts, it usually starts rather quietly and slowly. However, in 2010 there are some major changes coming that will impact on millions of Americans when it comes to their health care insurance, and on Medicare in particular. The first change is the old Medicare supplement plans A through G are being phased out and new plans A through G are being phased in.
While these “new” plans are not really new, they tend to create a split in coverage pools, meaning those before the June 2010 cut off date are in one coverage pool, and those who buy health insurance after the cut off date are in another coverage pool. This will mean both pools are closed and the chances are that insurance rates will go up in both pools when the novelty of competing health insurance companies wears off.
The second change is that two of the largest companies in the Medicare health insurance business will no longer be offering Medicare Advantage in 2010. This means that they will be completely out of business. This is because the government is reducing the amount of money paid to companies who offer Medicare Advantage, making it less than profitable for companies who carry it.
Since being in the insurance business means operating at a profit, the loss of government funding will likely put smaller companies out of business as well. It’s been confirmed that the big two – Coventry and Well Care – will be defunct in 2010. This will leave hundreds of thousands of people scrambling for alternative health insurance coverage to replace Medicare Advantage.
The best way to handle the coming changes is to start asking pointed questions now about what to do when Medicare Advantage ceases to exist. Make sure to speak with a highly trained and knowledgeable health insurance agent who will offer advice on what other choices may be available to replace Medicare Advantage.
Don’t wait until the last minute and find out that the clock is ticking. Knowing the alternatives now will make for a smoother and faster transition later.