This week’s question from Bonnie
Do you help people with Medicare Advantage Plans? my supplement premium increased over $30 again and is now almost $200/month. With the cost of everything else going up, I just don’t think I can afford it anymore.
Answer
We’re the Experts
Absolutely. We will have over 4,000 clients on Advantage Plan HMOs and PPOs by January 1st. And the move Bonnie is considering has become very common due to the rising costs of gas, food, and utilities in addition to Supplement premiums. One of the cons of Supplements I always go over with clients when we meet for the first time is premiums are guaranteed to go up every year starting at age 68. Those on Plan C, G, or F, which I almost guarantee Bonnie has, are seeing much larger increases than plan N.
I suggest anyone on C, G, or F who wants to keep their Supplement and postpone going on an Advantage Plan should move to N asap. there are no election periods that limit when one can apply for a new Supplement plan letter with the same or different company. it can be done any time during the year.
And so can the switch from a Supplement to an Advantage Plan as long as the HMO or PPO is rated 5-star, which the majority of plans we most often recommend are. So, Bonnie, if you would like to change, we can get you an Advantage Plan of your choice effective as soon as the 1st of next month. We are helping people do this daily and this upcoming Annual Election Period are anticipating the largest exodus from Supplements to Advantage Plans in the 14-year history of The Health Insurance Store.
Advantage Plan Benefits
The reasons are twofold. First is the inflation dilemma that has hit those on fixed incomes so hard, making higher cost Supplements unaffordable. I’ve said this 1,000 times in my career; “I don’t care how good your insurance is. It’s not worth a nickel if you can’t pay for it.” The second is just what a good overall value Advantage Plans have become the last three years. The best HMO and PPO plans have premiums from $0 to just under $30 per month. some will be even lower in 2023. we have also seen a trend of smaller co-pays on several medical services as well. And what may be the number one driving force behind the statistic that there are more people on Advantage Plans than supplements for the first time ever, is the generosity of ancillary benefits that include some or all of the following:
- $2,000 to $3,000 in comprehensive dental
- Vision and hearing care that includes free exams, glasses, and hearing aids
- Over the Counter allowances to purchase everyday items such as vitamins, medicine, hygiene products, and pretty much anything that can be found in the health section of a big box store or pharmacy
- Silver Sneakers which is a free gym membership
- Brand new perks such as Copay and Healthy Foods preloaded debit cards that provide money to pay for what those names imply
The “free stuff” has really gotten to a point where it’s hard to believe. Those who go to the gym, use only the cleaning and X-Ray benefits of their dental, and max out their eyeglasses, OTC, copay and health food allowances are getting over $1,900 per year in real value of goods and services! And that doesn’t even include any hearing aid or comprehensive dental benefits.
Know the Differences
Please, I don’t want everyone to run out and change to an Advantage Plan. And do not call an 800# you see on TV that washed-up actors or athletes are promoting! I can’t stress that enough. we’ve met too many people who cost themselves thousands of dollars by dialing those numbers. Advantage Plans aren’t a good fit for everyone and the right plan needs to be chosen, which isn’t easy with well over 100 now available. You need to have a conversation with one of our licensed agents prior to making that move. It’s possible that Bonnie or others are receiving, or might be candidates for in the near future, treatments such as chemotherapy, radiation, other infused or injected medications, among a couple other treatments or services that can cost those on HMOs and PPOs up to the annual Maximum Out of Pocket (MOOP), from $4,000 to $7,550, meaning any savings gained by reducing premiums compared to a Supplement would be wiped out and then some.
There are also other pretty significant differences between Supplements and Advantage Plans that need to be explained such as access to medical providers, how claims are approved and paid among others. That being said, we are absolutely not opposed to people making a change to an Advantage plan as Supplements get more expensive or just because they want to take advantage of lower premiums and excellent ancillary benefits. As I said, more and more we are recommending that clients do just that as long as he pros and cons are well understood.
Thank you!
If you have any questions or concerns regarding this column topic, or would like to make an appointment for a no-cost consultation, please feel free to give us a call – we would be happy to help. I’d like to remind everyone that I do a live call-in talk show called Medicare A to Z every 1st and 3rd Monday of the month on WMBS Uniontown, 590AM and 101.1FM, from 1 to 3 PM. You can listen in on their website, wmbs590.com.
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