Medicare Supplement Insurance Isn’t Immune To Health Care Reform

About 80 years ago my great grandfather bought property on the bay in Orange Beach, Alabama.  My father spent time their growing up, as did I, and as is my son Wiley IV.  We usually go down for a week every summer, but the oil spill and busy work schedules made it impossible.

So now, in late September, we’re taking Wiley out of school for a week and going to hang out and relax.  I’ve been working hard on not working too much while I’m there, but with all the health care reform changes that are now happening, that may be challenging.

If you’re already enrolled in Medicare and you have a Medicare supplement plan you’re happy with, why should you be concerned about health care reform? Behind the scene, changes could affect what you’ll pay for your Medigap insurance in the years to come.

Health insurance, in general, depends on a balance among the people who buy insurance. Some of the insured will need more health care and insurers will spend more on their medical care, but those expenses will be offset by premiums from other members who have fewer medical bills for insurers to pay. Medicare supplement insurance is no different.

What would happen if a Medigap plan were closed to new members? As the insured age, they’ll most likely need additional health care, which will drive up expenses for the insurance company. What do insurers do when they must spend more on the insured? They typically raise their rates. Medigap plans purchased prior to June 1, 2010 are now closed to new members so the rates for these plans are likely to increase faster than normal in coming years.

You can rely on the specialists at MediGap Advisors to keep you informed of changes like this that can increase your health care costs. At www.MediGapAdvisors.com, you’ll find advice from one the national leaders in helping people make knowledgeable decisions to improve their health care coverage. MediGap Advisors offers direct professional assistance from their personal advisors who have extensive knowledge about the best way to supplement your Medicare coverage. You may reach us at 866-323-1441 and there’s no charge for our assistance.