Thursday, June 6, 2013

Idea from DC to “Save Medicare”, Combine Medicare A and B into one Plan



Idea from DC to “Save Medicare”, Combine Medicare A and B into one Plan:

President Obama and Congress are looking into a proposal from 2010. The Bowles-Simpson Commission proposed to combine Parts A and B into a $550 deductible and 20% coinsurance rate with $7,500 out-of-pocket maximum. This looks familiar, “Holy Medicare Advantage Plan Batman!”

Can’t beat Medicare Advantage Plans, I guess the Government wants join them. Medicare Advantage Plans are structured very similar to most “Employer Group Insurance Plans”.  I like idea of structuring Original Medicare this way, it might make the transition to Medicare simpler for people as they retire.

Impact to Medicare Advantage Plans:
IF this happens, I would look for Medicare Advantage Plan organizations to strength their HMO Network Plans. Medicare does not have a “Network”, so the benefits will be standard. In contrast, private companies offering MAPD Plans, may be able to partner and offer comparatively strong benefits within an HMO.

Impacts on Medicare Supplement Plans:
IF this happens, I anticipate a competitive environment. Obviously the benefits for each of the Medicare Supplement Plans would have to be restructured completely, but Medicare could still regulate a set of standardized Plans that offer a different degree of coverage. The Supplement premiums should be more affordable too because Medicare would include a max out of pocket, which would limit the insurance companies exposure.

Again, this is just one of the ideas floating around Washington, if you would like to know more about Medicare and/or Obamacare please read my articles, or contact me.

Robert Bache aka “MedicareBob”

http://youtu.be/YYAx_L9S8EA

No comments:

Post a Comment