Medigap Plans: What You Need To Know If You Have A Medicare Advantage Plan

Wow, are things getting busy around here. There is a "Special Election Period" going on now for people who's Medicare Advantage plans are not renewing next year. This gives these people the oportunity to sign up for a new Medicare Advantage plan, or for Original Medicare along with a prescription drug program.

Even if you are enrolled in a Medicare Advantage plan, expect to see your benefits reduced and your premiums go up in the coming years. Some insurers will probably stop offering Medicare Advantage plans completely. Why are these plans in jeopardy?

Medicare Advantage plans have been known for providing more than Original Medicare, but Medicare is expanding benefits next year. If you’re enrolled in Original Medicare, you will no longer have to pay for an annual check-up and recommended preventive services. You won’t have to pay for co-insurance charges or have to meet a deductible for that care.

The federal government has been giving private insurance companies subsidies to manage Medicare Advantage plans. Since it now costs on average 14 percent more to cover people through Advantage plans than it does through Original Medicare, the government is freezing payment rates for Advantage plans next year. For two years, “higher quality” Advantage plans will get a bonus, while other Advantage plans will get rate reductions. Rate reductions will probably drive premiums higher.

Along with other reforms, such payment reductions are expected to save more than $177 billion over 10 years and even lower the Medicare Part B premiums. Payments to doctors who accept Medicare are not being cut, and primary care physicians and general surgeons in areas with a shortage of such providers will get a 10 percent bonus.

If you switch to Original Medicare, you may qualify for a Medicare supplement plan. In June 2010, two new Medigap plans with low premiums became available. With a selection of 10 Medigap insurance plans, you can find everything from minimal benefits in Plan A to comprehensive coverage in Plan F. For expert assistance to compare Medigap to your needs, visit MediGap Advisors online at www.MediGapAdvisors.com/ or call our friendly receptionist Janice at 1 866 323-1441. She’ll assign you a Personal Advisor, a licensed agent, to search for plans from A-rated insurance companies that meet your specifications – all at no charge or obligation.