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Changes in Medicare Advantage rules brought about by the health care law mean that seniors have a shorter time period in which to withdraw from MA plans. Consequently, seniors are being urged to make desired withdrawals before the disenrollment period ends on Feb. 14. Beyond that date, seniors will not be allowed to withdraw until the fall.
In addition, in previous years, seniors were permitted to switch MA plans during an “escape hatch” period spanning the first three months of the year. That option no longer exists; seniors unhappy with their MA coverage may switch only to traditional Medicare. They may, however, purchase a prescription drug plan or supplemental coverage.
Seniors need to examine their needs and become aware of new protections brought about by the health care law. Until now, MA plans have often required hefty out-of-pocket costs with no limit, prompting some seniors to go deeply into debt in order to afford expensive treatments. The new law aims to prevent this by capping MA out-of-pocket expenses at $6,700 per year.
Traditional Medicare requires a 20 percent co-payment for some services and has no cap. To avoid high out-of-pocket costs, many seniors choose to purchase a supplemental Medigap plan. However, Medigap plans can refuse applicants based on preexisting conditions, a factor that seniors should weigh carefully in choosing among health care options.
Health care alert: Shortened Medicare Advantage withdrawal period - Medicare - Senior Market Advisor
In addition, in previous years, seniors were permitted to switch MA plans during an “escape hatch” period spanning the first three months of the year. That option no longer exists; seniors unhappy with their MA coverage may switch only to traditional Medicare. They may, however, purchase a prescription drug plan or supplemental coverage.
Seniors need to examine their needs and become aware of new protections brought about by the health care law. Until now, MA plans have often required hefty out-of-pocket costs with no limit, prompting some seniors to go deeply into debt in order to afford expensive treatments. The new law aims to prevent this by capping MA out-of-pocket expenses at $6,700 per year.
Traditional Medicare requires a 20 percent co-payment for some services and has no cap. To avoid high out-of-pocket costs, many seniors choose to purchase a supplemental Medigap plan. However, Medigap plans can refuse applicants based on preexisting conditions, a factor that seniors should weigh carefully in choosing among health care options.
Health care alert: Shortened Medicare Advantage withdrawal period - Medicare - Senior Market Advisor