The state of Colorado has approved a move by Anthem Blue Cross Blue Shield to keep rates for its Medicare Supplement plans the same in 2010 as they were in 2009. Accordingly, there will be no rate change for Anthem Medicare Supplement plans available in Colorado. However, Anthem Blue Cross Blue Shield does remind customers that there is no rate guarantee for new businesses.
More information about rate adjustments
Rate adjustments for Medicare plans are common and are seen as necessary by health insurance providers for several reasons. One of the most common reasons for rate adjustments has to do with the increase in deductibles and coinsurance amounts from the Center for Medicare and Medicaid Services.
CMS increased the Medicare Part A deductible from ,068 to ,100. Part A coinsurance amounts increased from 7 to 5 per day for hospital stays from the 61st day in the hospital through the 90th day in the hospital. The coinsurance rate increase from 4 to 0 per day for the 60 lifetime reserve day. Also, coinsurance for Skilled Nursing Facility Care increased from 3.50 per day to 7.50 per day for days 21 through 100.
There were also changes to Medicare Part B deductibles; the deductible amount will increase from 5 to 5 per month and the premium rate will increase from .40 to 0.50 per month. There will be no corresponding increase in Social Security benefits in 2010 to help cover the cost of the increased rates. Also, based on income filing status, the CMS has set a higher Medicare Part B premium rate for higher-income participants and couples.
Again, Anthem Blue Cross Blue Shield subscribers may have the same rates because of Anthem’s choice to forgo the rate increase.
According to Blue Cross Blue Shield, instead of increasing cost of coinsurance and deductibles to customers, Anthem Blue Cross Blue Shield plans will cover these increases as long as the plan already covers deductibles and coinsurance amounts. As a result, the amount of money that Anthem pays out to health care providers in benefits for its participating members will increase.
Another reason that many rates for health insurance plans increase is become of the increased cost in providing health care services. This cost correlates to an increase in the number of Medicare beneficiaries who also enroll in Medicare Supplemental insurance plans. According to Anthem Blue Cross Blue Shield, the health insurance provider received the cost and use of its Medicare Supplemental insurance benefits and determined that they do not need to change the premiums for the plans for Colorado residents yet. The move to keep the rates the same as they were in 2009 will help to save Anthem Medicare Supplemental insurance plan members money.
Medicare Supplemental insurance helps to cover the doughnut hole coverage gap that applies to many individuals enrolled in traditional Medicare plans. With Supplemental insurance, participants can have increased coverage even when traditional Medicare plans do not provide adequate coverage for their healthcare services or products. Medicare beneficiaries should work with an experienced Medicare advisor to learn more about which Medicare Supplemental insurance plans are right for them.
By Wiley Long – President, MedigapAdvisors.com – The nation’s leading independent agency specializing in Medigap coverage. Our professional medigap advisors will help you choose the best Medigap plan for your needs.