Tag Archives: medicare

Medicare Part D Drug Plan Premiums Lower for 2018!

August 4, 2017 David Higgs

Here is something you don’t see very often. CMS who oversees Medicare has projected that the average Medicare Part D Drug Plan premium is expected to decrease in 2018! Based upon the bids by insurers for their 2018 Drug Plans, the national average premium is about $1.20 less than 2017 national average of $34.70.

This is in spite of the fact that Medicare Drug costs are rising faster than other Medicare costs primarily due to high-cost specialty drugs. So, while this is not a lot, it is a change in the trajectory which is good.

You can read more about it at the article linked here: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2017-Press-releases-items/2017-08-02-3.html

Based in the Richmond, Va area, David Higgs of Choices In Medicare specializes in helping seniors transition to Medicare. He can be reached at email: David@ChoicesInMedicare.com or go to website: www.ChoicesInMedicare.com

Interesting Stats on Medicare Costs and Coverage

May 16, 2017 David Higgs

Many times when meeting with clients, they want to know if they really need Supplemental coverages such as a Medigap Plan (Supplement) or a Medicare Advantage Plan instead of just going with Medicare Parts A and B alone. So what many Medicare beneficiaries really want to know is, what kind of out of pocket costs will they have if they don’t enroll in Supplemental types of coverages. I recently came across some interesting statistics that address this issue.

Using averages of all Medicare beneficiaries, they will have out of pocket medical costs a little over $3,000 per year (not including premiums). If you exclude those costs not covered by Medicare, I estimate you arrive at about $1,200/year in 2016 dollars. That is less than the average Medigap policy cost (looking at all ages, sexes and plans). One might conclude that on average, they would likely spend more in Medigap premiums than they would receive in benefits. However, with a Medigap policy, they cap their out of pocket exposure for medical costs. Medicare Advantage Plans also cap exposure. Remember that 2 of the largest out of pocket costs Medicare beneficiaries risk are the Part A Inpatient Hospital deductible(s) ($1316 per benefit stay in 2017) and the uncapped 20% Part B outpatient exposure.

To me, this data reinforces the need and value of insurance. Having a Medigap policy or a Medicare Advantage Plan not only helps cover out of pocket medical costs, but it protects your financial assets. It allows you to have the peace of mind we hear about so often.

If you would like to read more about this topic, I have linked to a website that covers this topic in more detail: http://www.commonwealthfund.org/publications/issue-briefs/2017/may/medicare-out-of-pocket-cost-burdens

Based in the Richmond, Va area, David Higgs of Choices In Medicare, specializes in helping seniors transition to Medicare. He can be reached at email: David@ChoicesInMedicare.com or go to website: www.ChoicesInMedicare.com

Medicare and Home Health Care Coverage Change

April 28, 2017 David Higgs

Many of my Medicare clients ask if Medicare covers home health care. The short answer is yes, but it has some restrictions. In the past, one of those restrictions was that the patient’s medical condition would be expected to improve as a result of the home health care. As a result, that meant that many beneficiaries who have a permanent condition would not be eligible for home health care coverage because their situation was “permanent”.

This restriction has recently been modified to include beneficiaries whose condition would not improve, but would also not worsen. Beneficiaries who have a condition that can be maintained so that it does not get worse can now be eligible for home health care under Medicare. There are other restrictions and you can read more about how Medicare covers home health care at the following link to Medicare’s website at: https://www.medicare.gov/coverage/home-health-services.html

Medicare Card Numbers Still Changing

March 29, 2017 David Higgs

You may recall a few years ago when the government announced they were prohibiting insurance companies to continue using social security numbers as ID numbers. However, it you look at your Medicare ID card, the government is the last entity to continue using social security numbers for identification. As I previously reported, this will end but the process is taking a while. The latest info I have seen is that new Medicare cards will be going out next year in April and should be completed by the following April in 2019. If you want to read more about this, a recent article is linked here: http://www.modernhealthcare.com/article/20170322/NEWS/170329971

Continue to protect your Medicare card and only use when absolutely necessary. For those who have a Part C, Medicare Advantage Plan, remember that you should not show your Medicare card to any provider or pharmacy. Only show your Medicare Advantage Plan card. For those who have a Medicare Supplement Plan, they will continue to show their Medicare card and their Supplement Plan card to providers.

Feel free to contact me if you have any questions or need assistance with selecting a Medicare Plan. I don’t charge any fees nor increase your cost.

Medicare Eligible Seniors Who Also Have an ACA Plan Should Consider Their Options.

February 2, 2017 David Higgs

Seniors who either already have Medicare or who will soon become eligible for Medicare and also have an ACA Health Plan (aka “Obamacare Plan”), should carefully consider their coverages. This creates a lot of confusion for seniors in this situation as there is no single source to confirm what they should do. In general, having both will duplicate coverage and be more expensive than just having a Medicare Supplement or Advantage Plan. A recent article that describes some of the issues is linked below.

http://khn.org/news/officials-warn-some-older-marketplace-customers-to-switch-to-medicare/

Feel free to contact me if you have any questions or need assistance with selecting a Medicare Plan. I don’t charge any fees nor increase your cost.

Causes of Drug Price Increases and What Can You Do About it?

September 21, 2016 David Higgs

We are all affected by drug price increases. There are many reasons for this phenomenon but several factors have been more significant. While we all want to know why this is happening, we also want to know what can we do.

As noted before, this issue arises a lot with my Medicare clients. So, what can my clients do about it? I have blogged before about some easy things to do such as: ask your doctor for samples, shop around different pharmacies, ask for generics, etc. I find the biggest thing to do is to compare your plan options. If you are on a stand-alone Part D drug plan, you should shop each year. If you are on a Medicare Advantage plan, you will need to consider both Plan medical benefits and drug copay costs. Of course, I help my clients each year with these comparisons. It usually starts with keeping drug lists current in Medicare’s comparison site where I can then help decipher the options including all costs (premium, deductible and copays).

A recent article goes into more detail on causes of increases. A link to that article follows: http://khn.org/news/candidates-decry-high-drug-prices-but-they-have-few-options-for-voters/

The main takeaway for me was, people need a good Independent Agent who specializes in Medicare. If you have questions about Medicare, call me, with no cost or obligation. This is what I do and enjoy it.

When Should You Enroll in Medicare? You Might be Surprised.

August 5, 2016 David Higgs

One of the most common questions (concerns) when I first speak with my clients is regarding if and when they must enroll in Medicare Part B. This arises as they either read about it, heard it from a friend or received correspondence stating they “had” to enroll but gave no clarifications. I also find many should have enrolled and did not know they needed to enroll. There are several key clarifications.

In short, people who become eligible for Medicare while they are working and on their employer’s health plan (or spouse’s) do not “need” to enroll in Medicare if they work for a company with 20 or more employees. If they work for a company with less than 20 employees, they do need to enroll in Medicare because it will be considered primary coverage to their small company’s health plan. Confused yet?

Regardless of whether or not they need to enroll in Medicare Parts A and B, the first thing I help prospective clients with, is to determine if they should stay on their company’s health plan or move to Medicare. This involves comparing the incremental cost to move from the employer plan to Medicare coverages. In most cases, Medicare coverages (including supplemental) is richer coverage than most employer plans.

A recent article just noted that over 750,000 Medicare beneficiaries have made the mistake of not enrolling when they should have and will be paying penalties averaging 30% for the rest of their lives. As a result of complaints, Congress is considering legislation to help address this problem. What is also interesting, is this figure does not talk about the number of beneficiaries who do enroll in Medicare needlessly and are spending potentially thousands of unnecessary dollars. If you want to read more about this, you can follow the link to the article: http://www.philly.com/philly/health/20160803_How_to_save_big_on_Medicare__Know_when_to_sign_up.html

If you have questions about Medicare, call me, with no cost or obligation. This is what I do and enjoy it.

News Update on Mergers (Aetna/Humana & Anthem/Cigna)

July 22, 2016 David Higgs

Lately, there has been a lot of attention in the news to the pending mergers between Aetna and Humana as well as Anthem and Cigna. The latest news is about the federal suits to stop the mergers. The main thing I want my clients to know is that with or without the mergers, their Medicare Plan will remain in place. This will mainly pertain to Medicare Advantage Plans and Part D drug plans. If there are going to be changes, they will occur at the Annual Election Period (AEP) where they can make a change if needed. In addition, if the merger(s) proceed, it will be years not months. As usual, I will help my clients with this.

Feel free to call me with any questions as this process continues. David.

Medicare Beneficiaries Should Get in the Habit of Asking

June 21, 2016 David Higgs

Another constant reminder I recommend all my Medicare clients do is to always ask about prescription alternatives. A recent study showed that doctors are easily influenced by drug company reps in what they should prescribe. In many cases, these prescriptions are for costly Brand name drugs in which there is a lower cost alternative. The study found that in many cases, a $12 complimentary meal to the doctor could end up costing patients hundreds of dollars more than the cost of a suitable equivalent. I am not against the free market and how a company chooses to promote its products, but I want my clients to be aware of their choices. If you want to read more about this study, you can click on the following link: http://well.blogs.nytimes.com/2016/06/20/drug-company-lunches-have-big-payoffs/?_r=0

So, my recommendation to my clients anytime their doctor prescribes something, is to always ask the doctor if there is a generic or lower cost drug available, do they have any samples they can provide and if the drug is totally necessary.

Medicare Beneficiaries, Shop, Shop, Shop!

May 19, 2016 David Higgs

Last month, I posted about how I am always reminding my Medicare Beneficiary clients that they are the Customer. They should ask questions about procedures and how they can save money by doing so. Another recent study validates this.

Researchers at the University of Pennsylvania Health System recently confirmed how much can be saved and how much transparency exists for medical procedure costs. They gave an example of shopping around for a CT scan over a 3 state area and finding a cost variance from $437 to $2239!

Beneficiaries with a Medicare Supplement have less need to shop around due to the coverage. But Beneficiaries with either Part C Medicare Advantage plans or those who only have Parts A and B, can benefit by checking around.

If you want to read more about this topic, you can go to the following link: https://consumer.healthday.com/health-technology-information-18/cat-scan-news-88/out-of-pocket-x-ray-ct-scan-costs-vary-widely-710984.html

Helping seniors transition to Medicare