Are Medicare Hmos On Their Way Out?
Are Medicare HMOs on Their Way Out?
Are Medicare HMOs on Their Way Out?
Medicare HMOs have been a highly valued alternative to traditional Medicare. They offer seniors relief from higher insurance costs and the donut hole that has become a large concern for many traditional Medicare beneficiaries.
Traditional Medicare basically costs $96 a month just to visit your health care provider, notes Alan Weinstock, insurance broker at http://www.MedicareSupplementPlans.com. And that price is going up. Plus its an additional $1100 deductible for overnight stays in the hospital. Then there is the Part D donut hole that leaves many seniors scrambling for a way to cover the cost of their prescription medication.
HMOs, however, offer a cost savings. Most plans cost nothing extra per month (you still have to pay your Medicare Part B to Medicare). And a night in the hospital is only $90. The savings can be hard to resist when youre living on a fixed income.
Medicare HMOs = Big Profits
The popularity of Medicare HMOs has resulted in big profits. In fact, on a per-patient basis HMOs actually receive more than what is spent on traditional Medicare coverage, according to those in the know. For this reason, the Medicare program has been a target for cost cutting including a projected $136 billion reduction in funding over the next 10 years under the new Affordable Care Act (ACA).
With that in mind the Congressional Budget Office estimated that under the ACA Medicare beneficiary coverage would decline from 11 million seniors today to 9 million by 2015. However, a recent report from LEK Consulting feels this projection is overstated.
In fact, according to the LEK consulting numbers, chances are that seniors currently enrolled in a Medicare HMO wont have the finances to change back to traditional Medicare, even if Medicare HMOs are less funded. Plus the newest crop of Medicare beneficiaries -- retiring baby boomers -- appear to be more comfortable with managed care. And many more doctors are limiting the number of Medicare patients they see. All this makes HMOs an attractive option to Medicare beneficiaries.
Medicare Beneficiaries Need to Plan
Seniors who are 65 and over or will soon turn 65 should plan appropriately to receive the best health insurance coverage for them. That means looking at your options.
Naturally, there is Original Medicare which includes Medicare Part A, Part B, Part C and Part D. This is a fee-for-service plan that covers many health care services and certain drugs. However, Original Medicare doesnt cover everything. So as a compliment to original Medicare, you may want to get a Medigap plan. A Medigap policy (also known as Medicare supplement insurance) is the coverage you buy to help cover the gaps in your Original Medicare insurance.
In addition, there are Medicare Advantage Plans. They include HMOs, PPOs, fee-for service plans, special needs plans, and Medicare medical savings account plans (MSA). If you have one of these, you do not need Medigap insurance.
There are wide ranges of health care coverage choices that may help pay for some of your health care costs. And whether or not you choose an HMO or some other Medicare coverage, it looks as if Medicare HMOs will be around for a while longer.
by: SophieBen
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