Posts Tagged ‘medigap’
Friday, August 12th, 2011
All of us are finding that our dollars are not going as far as they used to, but none are feeling the hit as much as senior citizens. It is shown that senior citizen’s expenses are rising twice as fast as their Social Security checks, and as many use this as their sole means of income, this is a frightening statistic. As a means to combat this gap in living expenses versus check totals, the Social Security Department created the Cost of Living Adjustment (COLA) in 1975. COLA was intended to be an automatic yearly increase based on the Consumer Price Index (CPI), and proved to be consistent until 2010. However, over the last two years, our senior citizens have received no COLA on their monthly checks.
With cost of living expenses far outpacing the calculated percentage of the CPI, many are lobbying for a review on this process. Currently, the Consumer Price Index is calculated via urban wage earners for all age groups. However, this does not take into account the higher costs for health care and other expenses older Americans need. As a means to more accurately gauge COLA, it is proposed the government use the spending patterns of seniors by means of the CPI for Elderly Consumers, and use this information to balance their checks accordingly.
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Tags: health care costs, medicare, medigap, wellness
Posted in Federal, General, Laws, Resources, Seniors, Tools | No Comments »
Monday, July 11th, 2011
As baby boomers begin to reach the age of Medicare eligibility, the program designed to cover senior’s health care faces an overwhelming addition of new enrollees. In fact, this year sees 7,000 new beneficiaries per day. Over the next 20 years 70 million are expected to be eligible for benefits, as compared with 45.2 million in 2008. As the aged population grows almost as quickly as the cost of medical care and pharmaceuticals, fears are growing that the Medicare system will become insolvent for many, even though they have paid into the system for their entire work lives.
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Medicare Faces Insolvency As Baby Boomers Enter System
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Tags: deductibles, health insurance, medicare, medicare supplement, medigap
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Thursday, January 6th, 2011
While numbers vary from carrier to carrier, it is expected that Medicare Part D (prescription) plans will increase by an average of 10% in 2011. Premiums have increased steadily over the years, but this one seems particularly steep. With the Patient Protection and Affordable Care Act, higher-income enrollees will pay a greater share of standard Part D costs, while low-income clients will continue to have access to plans with no monthly premium at all. Fortunately, all will benefit from health care reform when reaching the dreaded “doughnut hole”, as 2011 will bring some relief during this time. Manufacturer prices will be discounted by 50% and the plans will also cover 7% of generic drugs while in the coverage gap (between $2,840 and $4,550 in out of pocket spending), rather than requiring enrollees to cover 100% of their drug costs. Note that this applies only to original Medicare Supplement plans and Part D options, as most Medicare Advantage enrollees have drug coverage built into their plan.
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Medicare Prescription Drugs Plan Premiums Increase in 2011
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Tags: doughnut hole, medicare, medicare supplement, medigap, part d
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Thursday, June 24th, 2010
As of June 1, 2010 major changes will be made to the Medicare Supplement industry. This comes via HR 6331, also known as the Medicare Improvements for Patients and Providers Act, which was passed on July 9, 2008. This act intends to modernize the current Medicare market by dropping some coverage options and adding others to streamline the plans. Here is an overview of some of these changes:
“At-Home Recovery” benefit will be dropped from all 2010 Medicare Supplement plans
Medigap Plans I and J will no longer be available for new sales
Plan G will be modified to increase excess charges from 80% to 100%
New Hospice Benefit will be added to all plans
Two new Medigap Plans M & N will be available in 2010
Tags: health insurance, medicare supplement, medigap
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Tuesday, March 9th, 2010
You would be surprised to hear how many Medicare eligible clients do not understand how Medicare actually works. With an aging population, and enrollees at the highest levels to date (expected to increase dramatically with the baby boomers entering the system starting in 2011), it is most important to know the ins and outs of the system to ensure coverage in place when you need it.
People age 65 or older are entitled to Medicare Part A (hospital coverage) if they or their spouse are eligible for Social Security payments and have made payroll tax contributions for 10 or more years. Medicare coverage was also expanded to offer coverage for clients under the age of 65 if they have permanent disabilities.
Tags: heath insurance, medicare, medicare supplement, medigap
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