By Hannah Yang
Published 6:01 am
Friday, October 19, 2018
Mower County will be
one of 66 counties where Medicare Cost Plans will not be available in 2019 because
of a change in federal law which requires all health insurance companies to
stop offering Cost Plans in the majority of the state’s counties.
Because of this,
advisers strongly recommend their clients to sit down with a broker and discuss
what plans they have available to them, and to understand what plans would be
the best based on their budget and what their specific medical needs are.
“They went from having three options to now
just having two,” said Charles Moline, an AdvisorNet financial consultant. “The
cost plan was the most popular selling plan available in many counties in
Minnesota.”
A Medicare Cost Plan
is a type of Medicare coverage and because of changes in federal law, Cost
Plans won’t be available for many Minnesota seniors after 2018. If someone was
affected, they would need to to enroll in new Medicare coverage for 2019,
according to the Minnesota Commerce Department.
In Minnesota, Cost
Plans are offered by Blue Cross and Blue Shield of Minnesota, HealthPartners
and Medica and were offered under various brand names. Customers can call the
number on the back of their health plan member card (which is different from
your Medicare card) to see if you have a Cost Plan.
Moline couldn’t
emphasize more about the importance of having a second opinion with an adviser
before locking in a plan that may not be right for them.
“Many are anxious
about the changes,” he said. “Sit down with us, and that help comes with no
cost to them. Assistance comes at no cost. I really encourage people to do some
research and really making sure they’re getting the best plan available to them
for their money.”
More than 400,000
older Minnesotans will be affected once this change goes into effect next year.
However, for 21 counties, their Cost Plans will continue to be available.
What if I don’t
have a Cost Plan?
Then a customer
doesn’t have to do anything. These specific changes wouldn’t affect them.
What if I’m in one of
the 21 counties that still has Cost Plans next year?
Then you don’t have to
do anything to keep your Cost Plan. Back in September, you should have received
a yearly notice from your current insurer with any changes in premiums or benefits,
and renewal for 2019 is automatic. However, a customer does have the choice of
changing coverage during the Medicare Annual Enrollment Period from Oct. 15
through Dec. 7, 2018.
What will my options
be?
Although Cost Plans
are disappearing for the majority of seniors in Minnesota, there are still two
plan options available for seniors to consider: Medicare Advantage plans and
Medicare supplement (Medigap) plans for 2019. Moline emphasized that it was
important for those looking at options to choose a plan that best fits their
health needs, lifestyle and budget.
Both the Medicare
Advantage and Medicare supplement plans work with the customer’s original
Medicare benefits in several different ways and eligibility requirements.
Features, benefits, cost and networks also differ by plan.
If I am told by my
insurer that I am being automatically transitioned into a Medicare Advantage
plan for 2019
A Cost Plan insurer
should have sent a notification letter by Sept. 15, 2018, about offering an
automatic transition, which is when a customer’s insurer offered a Medicare
Advantage plan that was the close to a customer’s current Cost Plan. A customer
still has an option of choosing different coverage with another insurer during
the Medicare Annual Enrollment Period (Oct. 15 through Dec. 7, 2018), according
to the Minnesota Department of Commerce.
What if I have a Cost
Plan, and I’m not being automatically transitioned for a Medicare Advantage
plan for 2019?
You would need to
enroll in new coverage for 2019 by Dec. 31, 2018. You can enroll in a Medicare
Advantage plan or purchase a Medicare Supplement policy to go with Original
Medicare (Parts A & B) for coverage that starts on Jan. 1, 2019. A customer
could also purchase a stand-alone Part D prescription drug plan, unless it’s
offered as part of the Medicare Advantage plan that was selected.
According to the
Minnesota Commerce Department, if a customer doesn’t enroll in a new plan, they
will automatically return to Original Medicare (Parts A & B only) on Jan.
1, with significant coverage gaps and costs.
Timeline for Medicare
Cost Plan Transition
Oct. 15- Dec. 7 (2019
Medicare Annual Enrollment Period)
The time when any
Medicare beneficiary can choose and enroll into a new plan for 2019.
Nov. 2, 2018 – March
4, 2019
This is for seniors
who lost their Cost Plan coverage and switched to Original Medicare for 2019.
This is the timeframe
to buy Medicare Supplement coverage.
Dec. 8, 2018- Feb. 28,
2019
For seniors who lost
their Cost Plan coverage, this is a chance to pick a different Medicare
Advantage Plan or Part D prescription drug plan that they chose during the
Annual Enrollment Period.
Jan. 1, 2019
Seniors whose Cost
Plan coverage ended on Dec. 31, 2018, and
didn’t enroll in a new plan will return to Original Medicare (Parts A & B
only), with coverage gaps and cost burdens.
Jan. 1, 2019 – March
31, 2019 (Medicare Advantage Enrollment Period that’s new for 2019)
Any senior with a
Medicare Advantage plan can switch to a different Medicare Advantage plan; drop
their Medicare Advantage plan and return to Original Medicare; can sign up for
a stand-alone Part D prescription drug plan if returning to Original Medicare;
or drop their stand-alone Part D plan.
*Source: Minnesota
Commerce Department
https://www.austindailyherald.com/2018/10/cost-plans-for-medicare-to-end-experts-say-there-are-still-options/
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