Your Medicare company plan dropping off network? I have heard this quite a bit lately from many clients here in Ohio.
As I try diligently to keep up with this ever changing landscape of the Medicare / insurance industry, it became apparent to me that the average American does not have the time to keep up with all the changes taking place. I have warned in several previous blog posts regarding cuts to Medicare Advantage that Ohioans will see in the coming years. Here are some cliff notes of a recent Reuters article highlighting cuts on Medicare payments to insurers:
Cuts in Medicare Advantage plans will mean fewer Doctors and networks accepting these plans along with higher out-of-pocket costs to the consumer. The proposed cuts were originally 6-7%, however, it appears that they will now be closer to 8-10% in 2015.
One quote from the article is: “But if the costs to insurers of providing the healthcare services outpace the payments from the government, the difference is paid by the insurers, undermining their ability to profit from these plans.”
We all know what will happen if the insurer is not as profitable, right? That’s correct! More out of your pocket and/or even dropping the plan/network altogether. Please consider all the facts when choosing your Ohio Medicare Insurance plan. Also, look at this comparison of apples and oranges of Original Medicare and Medicare Advantage plans – Advantage vs Medigap.