Are you wondering what changes the Affordable Care Act (Obama Care) has in store for 2014 Medicare Supplement Insurance? Most consumers are confused about what changes they should expect from this type of insurance coverage. Some commonly asked questions are: Will they still ask health questions on the application? Will the 2014 Medicare Supplement Insurance be subject to the health insurance tax of 8 billion in 2014?
In this article we will cover these common questions and inform you of what to expect out of your Medigap plan.
2014 Medicare Supplement Insurance
The most common misconception that we are hearing consumers say about 2014 Medicare Supplement Insurance is that there will be no health questions for these plans. This is not true – Medicare Supplements are “secondary insurance” to Medicare. Secondary insurance is not required to be guaranteed issue. This means that we will still see Medigap policies asking health questions throughout 2014.
2014 Medicare Supplement Insurance Taxes
There is a health insurance tax of 8 billion in 2014 that affects primary health insurance such as group health insurance, dental and vision policies. Again since Medicare Supplement plans are secondary insurance they will not be liable for this tax. The health insurance tax is set to reach 14 billion by 2016. Not in every state but in most states we are seeing at least 2-3% increase in premiums due to this health insurance tax alone.
Right now we are seeing dental and vision carriers that we work with preparing to send out rate increase letters due to the Affordable Care Act. They will be providing notice 60 days prior to January 2014 that rates will be going up by x% due to the health insurance tax placed on insurance companies across the country. The insurance companies do not know exactly what their fee will be but they fill anywhere from 2-5% should cover the tax alone.
The two main points we want to reiterate about 2014 Medicare Supplement Insurance is that there will still be health questions on these policies and these plans will not be responsible for the health insurance tax which means rates should stay in the same ballpark.
877-936-2991 – MEDICARE INSURANCE FINDERS