What's wrong with that?
Obama Coming After Medicare Advantage
- Thread starter azmedsupagent
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What's wrong with that?
- 11,996
Let's please be clear about what "AARP markets" means. They sell their name to UHC for Medicare products and Aetna for the younger group. They don't actually run a plan or insure any of the med supps.
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If MA plans get cut overnight the political backlash from that would be something not even Obama could afford. Nevermind what the insurance carriers would do, what type of PR would he get about seniors who can't afford their bills and now can't get on supps? Not only would he lose votes from people who were on plans and now have lousy coverage, but with millions of seniors on these plans there are bound to be some ugly, ugly, UGLY stories of what would happen to seniors. For example: Mrs Jones was on a Med Advantage plan but got dropped because the plans got cut ~> Mrs. Jones can't get on a Med Sup because she had a heart attack or stroke within the last 2 years ~> Mrs. Jones, who now only has Original Medicare now get's diagnosed with cancer and cannot afford the 20% coinsurance on the $10k chemo drug she needs every two weeks. That equals REALLY bad PR for Obama. Mulitply that times at least another 100 examples and put that on a couple of news stations?
I think it's much more likely they'll slowly lower the reimbursement rates and get it back down closer to 100%. Let's not forget that plans and agents were still making a living at this when the plans were getting reimbursed at 95%. If the government lowers the reimbursement rates which leads to lower benefits then the insurance companies and agents have to tell Mrs. Jones that the out-of-pocket maximum just went to $6,000 instead of $3,200 and it's now the insurance company that's the bad guy. If you were looking to get elected again, wouldn't that make more sense?
I'm in no way, shape or form claiming to have it all figured out, but those are certainly some points to consider.
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- #43
- 484
Well, as was pointed out earlier in this thread if an MA plan pulls out of a market then the enrollees on that plan qualify for a special enrollment period during which they would qualify for a supplement again.
The other thing to concider is the fact that as medicare is currently posistioned it will be completely insolvent by 2026 and will be almost completley funded by federal income tax revenue. Yes there are alot of seniors on these MA plans and there are even more who are on traditional medicare. We need to do something to fix the inevitable demise of medicare or at least do something to slow it down or else there will be no medicare or MA for anyone! There is no reason that we should continue to pay excess subsidies to MA companies that are only quickening the demise of medicare. Yes some some seniors will be effected and will lose benefits but it is a sacrifice for the greater good. Many supplement companies are offering good free vision discount plans, prescription discount plans, hearing discount plans, and even gym memberships. Most of the time these are the only additional benefits these advantage plans are offering so with a special enrollment period and these additional benefits on a supp the loss of an MA plan would not cause a great catastrophy. Not to mention if they are low income they would probably be better off getting a high deductible plan F that will run them around $50 and keep thier MOOP at $2000.
Politics is politics, you can not make everyone happy all the time, there will always be two sides to every story. Obama is thinking of what he can do for the greater good and well being of all seniors not just MA enrollees. I commend him and hope he can get it done.
- 1,255
Terminations would produce an Open Enrollment which solves the PR issue for Mrs. Jones. Cutting to 95% will produce a partial end to the program and that would be the worst PR. Cuts will produce terminations and increased premiums and co-pays. Watch the exit doors, maybe not in every market, yet in most.
- 160
I hope he makes it illegal to sell the stuff!
Too many seniors can not afford Med Sups, and there are good MA plans in some regions. They are good in the metro area of the major cities in my state. It would be a political disaster to eliminate them. All I expect to happen is the funding will be cut back to 100 pct.
Some of these plans are remarkably good. Many of the med sup companies raised rates to the point that most people in those particular plans could not afford them. In most states you are stuck with your Med Sup and cannot change without health underwriting. Try forcing a senior on $1000 a month fixed income back on a $400 a month Med Sup. It's not going to happen.
I sell both. but I wish MA's had never been created. A lot of needy people are going to be hurt regardless of how this shakes out. I live in a state that offers GI Med Sup switch annually, so the educated clients can shop.
Some of these plans are remarkably good. Many of the med sup companies raised rates to the point that most people in those particular plans could not afford them. In most states you are stuck with your Med Sup and cannot change without health underwriting. Try forcing a senior on $1000 a month fixed income back on a $400 a month Med Sup. It's not going to happen.
I sell both. but I wish MA's had never been created. A lot of needy people are going to be hurt regardless of how this shakes out. I live in a state that offers GI Med Sup switch annually, so the educated clients can shop.
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- 7,066
Come on, you also know that a $400 per month Med Supp isn't going to happen. Not even United American is up to $400 per month.
I think you are embellishing to try to make a point. Why not make it a little more realistic and say around $165 per month as a rough guesstimate of an average. (That figure is still a little high as an average.)
Or, if you really are representing a company that charges $400 per month for a Med Supp and selling Med Supps for that company that cost $400 per month we need to talk. Your clients are getting screwed and I'm sure you are not selling very many Med Supps.
Had to bust your ass on that one.
I have seen even higher than that Frank, and the least expensive for the older ones are over $200 here in the metro area. Granted, those on the high priced Med Sups can and need to be changed, but most states do not have the luxury you and I enjoy in MO with the guaranteed issue from plan to plan. It still is not common knowledge among seniors that they can change med sups each year here in MO.
I am seeing some of the more obscure Med Sup alphabet plans which are hard to replace 'like to like' on the guaranteed annual issue, because the majors are only offering a couple of the letters as options.
I was trying to make a point, and perhaps embellished, but even $200 is a lot of money to a fixed income senior.
When Obama starts the funding cuts and the MA vendors purposely overreact and raise premiums and/or copays, the sh*t will hit the proverbial fan. Can you imagine if MA's are taken away and CMS forces the Med Sup carriers to Guarantee Issue everyone coming back to Med Sups. That is going to be fun and profitable for the Med Sup sales makers, and going to cause some major premium increases to the Med Subs.
I am seeing some of the more obscure Med Sup alphabet plans which are hard to replace 'like to like' on the guaranteed annual issue, because the majors are only offering a couple of the letters as options.
I was trying to make a point, and perhaps embellished, but even $200 is a lot of money to a fixed income senior.
When Obama starts the funding cuts and the MA vendors purposely overreact and raise premiums and/or copays, the sh*t will hit the proverbial fan. Can you imagine if MA's are taken away and CMS forces the Med Sup carriers to Guarantee Issue everyone coming back to Med Sups. That is going to be fun and profitable for the Med Sup sales makers, and going to cause some major premium increases to the Med Subs.
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SeniorInsuranceGuy
Expert
- 75
I'd be willilng to bet that we dont see 5 years worth of renewals. Things will change and they'll change the rules in the middle of the game as they've already shown they will do.
Sounds like a good bet to me, too. The last people CMS and the elected government are concerned about are the agents.
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