June 1, 2010

Frank Stastny

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Florida
Drum roll please. Announcing, for your selling pleasure, Medicare Supplement Plans M&N.

Medicare Supplement Plan M.
Plan M offers the most dramatic changes in Med Supp Plans as we have known them. It will pay 50% of the Part A deductible and no coverage of the Part B deductible. It will still pay the 20% coinsurance for Part B charges. Just the Part B deductible will not be paid.

Remember, the Medicare Part A deductible is good for a sixty day period. Not every time they have to go to the hospital. Plan M should be priced substantially under all other plans and may be the one that presents the best option for those currently with an HMO.


In areas where the cost of Plan M is competitive with an HMO it will be very easy for the agent to show the prospect that switching to Plan M is definitely in their best interest. The senior will no longer be limited to network doctors and hospitals.


Medicare Supplement Plan N.
Plan N may be the one most often recommended to seniors and may outsell all other Medicare Supplement Plans depending on how it is priced by the insurance companies.



It may be the easiest of all Medicare Supplement plans to present and sell.


Seniors, especially those currently on an HMO or those recently new to Medicare, who had group coverage when still employed are very familiar with co-pays and understand them and how they work.

Plan N will cover 100% of the Part A Deductible but like Plan D, for example, will not pay the Medicare Part B Deductible. That in of itself is not a new concept nor any different than the current Plans D and G.

The big change in Plan N is in the Part B Coinsurance. The Part B coinsurance will now be subject to a new co-pay structure.

When a Medicare recipient goes to the doctor there will be “up to” a $20 co-pay for the office visit. There is no further explanation of what is meant by “up to”. I guess that is a secret at this point.

If they go to the emergency room there will be a co-pay of “up to” $50 for an emergency room visit. Again, no explanation of “up to” with that one either.

[FONT=&quot]These represent the most dramatic, all encompassing changes Medicare has made since the establishment of the Standardized Plans in 1990.[/FONT]


[FONT=&quot]At this time it is all guess work. I have contacted several insurance companies and non of them would admit to or claimed they didn't know yet what there plans were for the new Standardized Med Supps.[/FONT]


[FONT=&quot]Assuming that the companies have everything in place by then, marketing these plans can begin as early as December1, 2009.
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I've studied the Plan M and N also. I am really interested to see what the premiuims will be on these plans. You can pretty much count on AARP offering the new plans because they offer every Medicare supplement already. I'm wondering on the Plan N, if the client has not met the Part B deductible if they will still have the $20 copay on office calls or if they will have to meet the deductible and then have a $20 office call copay.

Also, we need to find out if physical therepay is considered an office call. If your client needs physcial therapy 3 times a week for a month that could really add up.

It should be interesting.
 
In areas where the cost of Plan M is competitive with an HMO it will be very easy for the agent to show the prospect that switching to Plan M is definitely in their best interest. The senior will no longer be limited to network doctors and hospitals.

"Definitely" is a big word.

There are many areas where the network is not only sufficient - it dominates the market.
 
Well, Frank, if the MA-HMO disappears as has been predicited on here, there will be a huge market for the new plans. I just hope that CMS doesn't f--k it up with a a long list of rules and regulations like they have done with the sales of MA's.;)
 
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"Definitely" is a big word.

There are many areas where the network is not only sufficient - it dominates the market.

Yes it is a big word. It was intended to be. If the price is competitive then a Med Supp will "definitely" be a much better value for their premium dollar than an HMO.

I'm sure the current network is "sufficient" and probably does dominate the market, today. That may change dramatically once the subsidies to HMO's are stopped and Plan M is available for agents to sell.

I guess we will just have to wait and see. I prefer to look upon the upcoming changes, at least for now, as being very positive for seniors as well as agents.

There is plenty of negative information being disseminated right now about health care in the US. I think we also need to focus on some of the changes that may be very positive for agents to look forward to. I prefer to think of my glass as being half full.
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Well, Frank, if the MA-HMO disappears as has been predicited on here, there will be a huge market for the new plans. I just hope that CMS doesn't f--k it up with a a long list of rules and regulations like they have done with the sales of MA's.;)

That is my sincere hope also. However, CMS has the power to do that with Part C plans because government money is going to the companies that are selling them.

As far as I know there will be no government money going to companies offering Medicare Supplement policies. It doesn't appear that CMS will be able to assume a dictatorial role in the selling of Med Supps. They can't do that now so we can only hope that it continues that way.
 
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I am very excited about these new plans and cannot wait to see what the pricing structure will be.

The network dominating the area is one thing; it is another to be subject to lengthy wait times and have no other alternative. If (and this is a big IF) the pricing is right, this will give MA-HMO and MA-PPO plans a run for the money.

Great info Frank.
 
Well, Frank, if the MA-HMO disappears as has been predicited on here, there will be a huge market for the new plans. I just hope that CMS doesn't f--k it up with a a long list of rules and regulations like they have done with the sales of MA's.;)


There was an article on Ritter's Blog from the Congressional Register. They will regulate all of it including who you can contact and even Commissions. They will love to control everything we do. :err:
 
I imagine there will be some demand for these plans for new enrollees, but those who like their existing plan may resist any type of change - especially if it is perceived as a loss of coverage.
 
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