Medicare Advantage Going the Way of the Dinosaurs

The more things change, the more they seem to – well, at one time that old saying ended with "the more they remain the same." This however can't actually be said of the coming changes to the Medicare system in 2010. This one change will rock your world if you happen to be 65 and over or under 65 and on Medicare disability.

Well Care and Coventry, two of the largest companies in the Medicare health insurance business will no longer be offering Medicare Advantage in 2010. Yes, they will be totally out of business, as they can no longer afford to offer the Medicare Advantage plan. Why is that? This is because the government is reducing the amount of money paid to companies who offer Medicare Advantage.

If you think that might not affect too many people, think again, as just Coventry alone handles Medicare Advantage benefits for over 318 thousand individuals. Suffice it to say that tens of thousands of Medicare Advantage recipients will be wondering what hit them. Well, and also wondering what they are going to do with the demise of the Medicare Advantage plan.

One thing you will need to know is that you will be guaranteed issue for 63 days once your Medicare Advantage plan(s) are no longer in effect. However, in order to get a jump on planning for the future, make the smart move and talk to a local health insurance agent now. Choose one that knows their plans intimately and will be able to walk you through what other alternatives you may have.

While the ink is not dry on this particular change for the future, it very much looks like, even though there may be some other alternative offered to those who will lose their Advantage plan(s), the alternatives may be more expensive and have higher premiums.

Those between a rock and a hard place would be best to start checking out Medicare supplement alternatives as soon as they can, and also making it a point to talk to a knowledge health insurance
agent.

Richard Cantu is with Medicare supplements resource, GoMedigap.com. To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.

Huge Changes Are Coming to Medicare Advantage

If you happen to be a Medicare Advantage fan, and feel the service has done right by you, you will not be too impressed to find out that in 2010, Medicare Advantage will no longer be offered by some of the largest health insurance companies in the US – which includes Well Care and Coventry.

Shocking isn't it? Will other smaller companies go the same route? Chances are smaller companies will indeed follow in the footsteps of their bigger competitors. If the big boys on the block can't afford to offer Medicare Advantage any longer, then it's not likely smaller companies will have much success staying afloat either.

You might be wondering what on earth is going on and why you are about to lose what you feel is a good health care plan. Well, here is the deal. The government has, since the inception of Medicare Advantage, seriously over funded it. In fact, the doctors in the various networks actually got paid more than Medicare paid under the auspices of Medicare Advantage.

Given the poor state of the US economy, the new administration in the White House, and the fact that President Obama is now trying to straighten up the health care system, over funding to this program (Medicare Advantage) will cease in 2010. Evidently there will be other programs faced with funding crunches in the year to come.

Will these funding changes make a difference in how those 65 and over or under 65 and on Medicare disability use the health system? Yes indeed, as they will need to be absorbed into the Medicare system in some other way, and use other alternatives for their health care needs.

This coming change will affect tens of thousand of people, and the health insurance system will be in a total uproar for the better part of 2010 trying to sort out all the new changes. Think smart and call a health insurance agent now and find out what you may do to switch from Medicare Advantage to something else.

Richard Cantu is with Medicare supplements resource, GoMedigap.com. To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.