DON'T BE DISTRACTED BY THE SHINY OBJECT!
As reported in the November 6th edition of Modern Health magazine, unfavorable CMS actions for 2024 (among other things) reduced the base rate paid to Medicare Advantage carriers by 1.1%. That might not seem like much, but with health care inflation at 5.8%, insurers
have been forced to cut benefits.
To wit, over-the counter allowances - one of those “extra benefits” featured in omnipresent TV commercials - have been cut dramatically. If yours dropped from $200 to
$150, might you be tempted to look at what other carriers are offering?
Note however, there are other more impactful changes.
To wit, cost sharing (co-pays, etc.) caps are increasing on average 8.6%; up to $6,000 or more, depending on the carrier.
I’ll close by noting three-quarters of Medicare Advantage enrollees choose zero-premium plans.
In contrast, a ‘traditional’ Medicare Supplement Plan (depending on age and other factors) has a monthly premium
of +/- $300, in return for which, you rarely see a bill.
H-m-m-m. Pay as you go up to $6,000 or, pre-pay $3,600 for 100% coverage?
You’ve still got 25 days to do the math.
DISCLAIMER: MEDICARE ADVANTAGE ENROLLMENT WILL GROW TO 33.8 MILLION IN 2024, SO
CLEARLY ‘THE MATH’ WORKS OUT DIFFERENTLY FOR EVERYONE!
