Sep 20,
2018
MANKATO
— An estimated 320,000 Minnesotans with Medicare Cost plans will see them soon
disappear and are facing choices as they search for replacement plans.
Robin
Thompson, with the Minnesota River Area Agency on Aging and supervisor of the
Senior LinkAge Line in southwest Minnesota, said having that many people
searching for new plans in the next few months is going to cause some stress
and confusion and stretch the LinkAge Line staff.
"We
certainly don't want anyone to panic," she said. They are adding temporary
staff and extended hours to their call-in center. "But we know there are
going to be long waits, so people should start in early."
Many of
those losing their Cost plans are likely to switch to a Medicare Advantage plan
or a "true supplement" plan that gives them a wider network but at an
even higher cost.
Mankato
insurance agent Mary McClure said the change is a big deal that will raise
costs and require a lot of decisions to be made.
"It's
crazy. Before I just looked at the drug plans for clients because that Cost
plan was so prized by consumers. But now we're going to have to look at
everything for every client."
Cost
plans have been around since the 1970s in Minnesota. The policies are sold by
only three insurers — Blue Cross and Blue Shield of Minnesota, HealthPartners
and Medica — under the brands Platinum Blue, HealthPartners Freedom and Medica
Prime Solution.
Congress
has for years been trying to get rid of the Cost plans but have delayed a
decision until recently. The Cost plans have been popular with consumers but
more costly to the Medicare system because of the way they are reimbursed.
With
Medicare Advantage plans the insurance company assumes more risk. With Cost
plans Medicare covers more of the high-cost claims.
Thompson
said details of the new plans that will be offered by insurance companies won't
be available until Oct. 1.
'A ton
of plans'
McClure
said she and other agents haven't seen all of the information yet, but she's
sure costs will rise substantially for many people.
"And
there will be a ton of different plans available to people, so that will be
confusing. Everyone and their brother will be coming out with a plan."
She
said one of the big things people making the switch will have to look at is the
networks they will be enrolled in. Those with the Cost plans have been used to
a very broad network of providers, both in Minnesota and other states.
The
Cost plans may still be available to people in 21 Minnesota counties, including
Le Sueur and Sibley counties in this area. That's because the law allows them
to continue if there isn't much competition from Medicare Advantage plans in
the county.
But
it's not clear if insurance companies will continue making the Cost plans
available in all those 21 counties.
Thompson
said it's important that people who now have Cost plans to watch their mailbox
closely.
"People
are starting to receive notices. They should read everything that comes from
their plan," she said.
"Pay
attention to what the letter says."
That's
because some people may be automatically moved from their Cost plan to an
Advantage plan. Blue Cross subscribers, for example, will likely be
automatically moved to an Advantage plan. "People would have a right to
continue with that or enroll with someone else," Thompson said.
Thompson
warns that scammers could try to use the situation. She said people should give
no private information to anyone who calls them — your plan or the government
will send you a notice by mail.
Thompson
said people who are losing their Cost plans will have "guaranteed issue
rights" to pick a new Medicare supplement plan without being asked any
health questions and can't be denied coverage based on pre-existing conditions.
But she said those rights aren't available if people drop their Cost plan
before Nov. 2.
While
the loss of Cost plans are a big deal in Minnesota, it's not an issue in most
of the country because they are offered in few states.
"Most
of the people who have Costs plans are in 10 states and more of them are in
Minnesota than all of the other states combined. We were the first state to
have them."
She
said no one is exactly sure why the Cost plans are so big here but there is a
leading theory: Minnesota has lots of snowbirds and unlike Advantage plans, the
Cost plans allow people to see doctors out of the network in other states.
Follow
Tim Krohn on Twitter @TimKrohn
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