Saturday, December 14, 2013

How will ObamaCare affect my Medigap Plan?

By B. Loughead

Out of everyone in the country, Medicare beneficiaries have been the most wary of the Affordable Care Act (ACA) or “Obamacare.” Many fear that it will change their Medicare and Medigap plans, either by increasing their prices, decreasing their coverage, or by replacing them altogether.

However, those who’ve been worried about this can rest assured that little to nothing about their Medigap or Medicare plans is going to change due to the ACA. (Some changes in price and coverage may change to do other forces such as inflation, however.)   People with a Medicare Advantage plan however are seeing a lot of changes to their network, benefits and in some cases their doctor no longer being accepted.  This is not happening with a Medigap Plan.
Medigap Supplement Information

Additionally, Health Care Reform is not going to clash with their chosen Medigap plan. Medicare and Medigap alike are not going to be turned over to the exchanges, and will remain separate programs entirely. The ACA is primarily aimed at the uninsured under 65 and others who do not meet the criteria to qualify for Medicare and Medigap supplement plans. Also by having Medicare and Medigap coverage, they meet the criteria for coverage and therefore will not have to worry about any penalties come tax time as they do meet the individual mandate that the ACA introduced.

Plus, thus far, the only real changes brought about by the ACA to Medicare and Medigap plans in particular have been very positive. They have included two things:
      * A reduced cost for certain prescription drugs for beneficiaries
·    * The addition of certain forms of preventative to Medicare’s list of covered services.

Medigap, likewise, is not going to change very much as a result of the ACA, because, while the plans are standardized by the government according to their letters, it is an entirely separate program. Medigap is not subsidized by the government like the exchange program or Medicare program, and all supplementary insurance plans are sold and operated by private insurers, which are responsible for their own fine print, including cost and coverage.

Medigap Users- No Need to Worry!
Many people also have wondered if perhaps they’d find a better deal on the exchange than they find through government sponsored Medicare and Medigap supplementation. However, know that you’re getting a much better deal through Medicare and Medigap for more comprehensive coverage at a lower cost simply because it is Medicare and Medigap. Most health policy experts would tell you that if you qualify for Medicare, you would do well to stick with it, and also to get the best supplemental insurance you can for your health needs. Government subsidies for Medicare still mean that you’ll end up spending less for better care.

It is a good idea to have an independent agent review your Medigap Plan every few years to see if you can save money.  New plans and carriers come out all the time and an independent agent would be able to show you whats available in the marketplace.  The best part is you don't have to wait until October like Medicare Advantage Plans.  You can actually switch your plan any time of the year that it benefits you.

Summit Medigap is an independent insurance agency that specializes in Medigap supplement insurance. We make Medicare seem easy™. For more information about Medigap supplement insurance visit or call us at 1-888-40-Summit (888-407-8664). We have helped many people in Florida, Georgia, North Carolina, South Carolina, Texas, Colorado and Michigan to name a few.

Summit Medigap Medicare Supplemental Insurance

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