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?
This week I am in Las Vegas, Nevada for an International Health Insurance convention. Why I was here I heard several people talking about the Affordable Care Act, Nevada Medigap Plans and other health insurance alternatives. Since the large portion of Obamacare is coming very soon I figure I would discuss how Nevada Medigap Plans will be affected by the Affordable Care Act.
Nevada Medigap Plans
In summary, Nevada Medigap Plans are supplemental insurance coverage for Medicare Parts A & B. There are 10 different plans labeled by letters A through N. Each one covers different portions of your out of pocket expenses but the Plan F is the most popular plan. The Plan G is the most cost effective of the Nevada Medigap Plans.
It is very important to compare the rates because plans are standardized and the different companies must offer the same benefits. Some companies may ask different health questions but the plan designs are federally regulated. Compare Medicare Supplement Quotes through our Medicare Quote Engine.
Nevada Medigap Plans – Affordable Care Act
In general Medigap plans will not be affected greatly by the new healthcare laws. However, we have put a few items below that will address concerns from different Nevada residents:
- Health questions will still be asked for Medicare Supplement Plans. These are supplemental policies and the “No Health Questions” applies to primary insurance not secondary insurance.
- There will be no subsidies given for Medigap Plans.
- You are not required to enroll in these plans or a Medicare Advantage Plan.
- There are laws that are trying to eliminate the Plan F Medicare Supplement. However, these new bills will probably be shot down since over 5 million people have a plan F Medicare Supplement.
To learn more about other facts regarding Nevada Medigap Plans call 1-800-800-1397 option 6.
Today I was notified of recent reports of Medigap Changes that are trying to get pushed through with the Affordable Care Act (OBAMA-CARE). The major change that is trying to get pushed through is “add cost-sharing to Medigap plans.” We have mentioned this in several other articles but will re-describe what new changes have risen.
The reason the Medigap changes are being discussed for policies like the “Medigap Plan F” is because there is no cost sharing on these plans. Many believe this causes over utilization by beneficiaries; however they do not consider the unintended impacts this has on beneficiaries.
Medigap Changes – Cost Sharing Implementation
This has not been passed yet but below are some of the effects this could have on Medicare beneficiaries.
- This is believed to cause a Medicare Beneficiary to avoid going to the hospital/doctors office for care. Which could possibly worsen their health in the long haul.
- Medigap Plan F premiums would shoot through the roof if this cost sharing was eliminated on new plans. Why? That is because there would be no new beneficiaries coming onto the plan so the only people left on these plans would be individuals with health issues that could not change.
Is there anything else being discussed as possible changes for Medigap policies?
- Benefit redesigns that would redistribute cost burdens (This already happened with the Medicare Modernization Act of 2010)
- Prohibiting or taxing Medigap “First Dollar Coverage” (mentioned above)
- Raising Medicare age
- Other things as well that are a little too complicated to review in a short article.
We recommend choosing a Plan G Medicare Supplement which can avoid possible Medigap Changes. This plan will also prevent higher rate increases which can come from Guaranteed Issue supplemental plans. You should call 1-877-936-2991 today to get a cost comparison completed of the Plan F and Plan G policies.