Posts Tagged ‘Garrett Ball’

The March 2010 passing of the health insurance reform legislation by Congress, which was subsequently signed into law by the President, will affect everyone in the country in some way, including those on Medicare. No matter what your political persuasion, knowing the effects it will have on you is essential. So, what exactly does health care reform mean for Medicare, Medicare Supplements and, more specifically, what does it mean for you?

• One overarching myth about health insurance reform, as it relates to Medicare, is that Medicare A & B benefits will be cut. While it certainly remains to be seen how the changes in the bill affect Medicare long-term (many would anticipate a largely negative effect), the $400 billion in savings from Medicare that is being used to supposedly pay for the bill does not come from cuts to Medicare A & B benefits.

• As of right now, Medicare does not pay for annual wellness visits. However, as part of the changes, it will begin paying for these visits. It is uncertain when this benefit will start.

• Over the next 9 years, payments to home healthcare and for certain hospital procedures will be cut by approximately $66 billion.

• First and foremost, there is nothing in the legislation that specifically addressed Medigap plans.

• For people turning 65 on or after June 1, 2010, Medigap plans have changed (even before the recent legislation) already. This didn’t affect you if you have a current Medigap plan, only if you are turning 65 or changing plans now. There are two new options available also, including the promising Medigap Plan N.

• In the long range, most people believe that Medigap plans and the way they work will incur some minor changes. However, in the short run, there is nothing in the legislation that should cause action on your part when it comes to your Medigap insurance.

• Medicare Part D is one of the major portions of Medicare that will be affected by the legislation. The legislation starts the process of closing the gap (or “donut hole”) that has been a problem for so many seniors. Beginning in July 2010, seniors who hit the “donut hole” will receive $250 in the form of a rebate.

• After this year, the ‘donut hole’ will gradually close over the next 10 years. According to the legislation, the Federal Government will pay 75% of individual retail drug costs between $2,700 and $6,154 in total retail costs by 2020.

• Overall, Medicare Advantage plans will see the largest impact of any part of Medicare, as a result of this bill. Payments to Medicare Advantage insurance companies will be cut by $132 billion over 10 years.

• This change will start in 2011. The reduction in payments (and anticipated corresponding reduction in plan benefits) will be phased in, so the initial impacts may not be dramatic. But overall, this will have a far-reaching impact on the services these plans can offer.

Garrett Ball is the owner of Secure Medicare Solutions and Medicare-Supplement-Comparison.com, which are leading resources for Medicare and Medicare Supplemental insurance. On these sites, you can get a Medicare supplement quote, uncover answers to your questions about Medicare and Medicare supplement plans or find out more about the effects that health care reform will have on you.