COST plans

Dutch

Expert
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Do any of you have experience with COST plans?

Our county has a COST plan available. They seem to be a pretty good deal for seniors who's Med Supp is super high ($400+ monthly).

I tried to rewrite couple that is each paying over $400 for their med supp because they didn't like the idea of Medicare Advantage (new to our county.) They just got declined by UHC and now it's too late for Medicare Advantage.

The Medica cost plan can be written all year and has a "Premier Plan" that is $125/month and covers almost 100% of everything.

  • $0 copays for most medical services
  • $0 for primary care visits and specialist visits
  • $0 eVisits through virtuwell®
  • Maximum medical out-of-pocket limit of $3,400
  • Worldwide emergency care
  • Annual benefit allowance for prescription eyewear and for hearing aids
What are your thoughts and have your customers had good experiences? Thank you
 
Medicare Cost Plans are a type of Medicare health plan available in certain areas of the country.

Here are important facts about Medicare Cost Plans:

You can join even if you only have Part B.
If you have Part A and Part B and go to a non-network provider, the services are covered under Original Medicare . You would pay the Part A and Part B coinsurance and deductible .

You can join anytime the plan is accepting new members.
You can leave anytime and return to Original Medicare.
You can either get your Medicare prescription drug coverage from the plan (if offered), or you can join a Medicare Prescription Drug Plan (Part D) .
Another type of Medicare Cost Plan only provides coverage for Part B services. These plans never include Part D. Part A services are covered through Original Medicare. These plans are either sponsored by employer or union group health plans or offered by companies that don't provide Part A services.

For more information about Medicare Cost Plans, contact the plans you're interested in.

Other Medicare health plans | Medicare

Sounds like a lot of fun.

Let us know how this works for you.
 
somarco said:

Sounds like a lot of fun.

Let us know how this works for you.


What could possibly go wrong? Why aren't these more popular, and why did a plan in MN pull out this year? A lot of agents had a field day on that one.
 
Sounds to me like a good opportunity for adverse selection. Unless the issuing carrier has ways to protect themselves they are going to get hammered.

You can join anytime or leave any time.

Join when you expect a big claim. Then leave once it's paid.

What could possibly go wrong there?

Networks are one of the ways carriers cover their butts.

Oops, sorry. Those providers are no longer participating. You pay this bill out of your pocket.
 
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somarco said:

Sounds like a lot of fun.

Let us know how this works for you.


What could possibly go wrong? Why aren't these more popular, and why did a plan in MN pull out this year? A lot of agents had a field day on that one.

From what they tell me, they can't sell cost plans in counties that have "too many" Medicare Advantage options. So in Nebraska, they can't sell in these cost plans in Lincoln or Omaha because the Advantage plans are so prevalent.

These Cost plans have been around for a long time, but I guess if it was to drop out of your county then you would have to warn your client when signing up that they would probably have to switch to a Medicare Advantage plan if that happens.
 
I think these have their place for people stuck on a high priced Med Sup due to health conditions. I have only used them in Counties that do not have an MA plan available so far. The price is right and also includes dental, glasses and gym membership. Have to take out a separate PDP. From what I was told when all he people lost their Cost Plans in Minnesota most went to a Medica Med Sup. No health question to join Cost Plan except the ESRD question.
 
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