Medicare Supplements Unchanged By Health Care Reform

By Author: Tyra Phillips
Total Articles: 78
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There have been sweeping changes in health care that will affect millions of Americans who need medical attention.  The majority of people will benefit by having access to quality care for an affordable price.  However, those who are enrolled in Medicare and have purchased Medicare Supplements may not notice any changes as the impact on these plans will be minimal.  Despite having little impact this year, the Medicare program will be more financially stable as a result of this bill, yielding quality care for Seniors for years to come.     
The Medicare program will become more financially stable because funding to Medicare Advantage Plans will be cut gradually over the next 10 years.  All in all the legislation will cut $132 billion in funding over the next ten years because Medicare currently overpays for these plans.   Medicare Advantage plans cost the program 13% more per individual than original Medicare.   While this may affect some seniors over the next few years who are enrolled in Medicare Advantage Plans, it will preserve the program for future generations.  

As cuts are ...
... made to the Medicare Advantage program, Medicare Supplements will become more attractive.  Many insurance companies will likely not offer these types of plans in the future and those that do will probably be quite expensive.  In addition, many Doctors and Hospitals have already expressed their dislike for these plans and have stopped accepting patients who have them.  Therefore, experts are expecting thousands of seniors who are currently enrolled in Medicare Advantage Plans to purchase Medicare Supplement Insurance over the next five to ten years.  

Medicare Supplements will be rather unchanged as a result of this legislation.  However, effective in 2015, Plans C and F will include nominal cost-sharing.  Medicare Supplement Plan F is still the most popular and the most comprehensive plan available and is offered by the majority of companies who sell this type of insurance.  Keep in mind these plans are standardized by the Center for Medicare and Medicaid Services, which means all insurance companies offer the same exact plans. 

There will not be any major changes to Medicare Supplements including Medicare Supplement Plan F, but there will be changes to Prescription Drug Plans.  This legislation will effectively close the donut hole over the next few years, which will save thousands of seniors hundreds of dollars per year.  Many people who take a significant amount of medications rely on prescription drug plans to avoid financial disaster.  This bill greatly increases the benefit of purchasing a prescription drug plan, especially if you are on a tight budget and take expensive medications. 

Sweeping health care reform has a positive effect on seniors in the long run because the Medicare program will be more financially stable and prescriptions will be cheaper.  In addition, because of the Medicare Modernization Act several popular plans such as Medicare Supplement Plan F will now offer a hospice benefit. Those who are enrolled in Medicare Advantage plans will likely need to purchase Medicare Supplemental Insurance as funding for that program will be cut.  Medicare Supplements will continue to be the best option for seniors and will be rather unaffected by any legislation.