As a Medicare Specialist, the question that I am most often asked is “How will Obamacare affect my Medicare insurance?”
According to CSG Actuarial, which tracks and analyzes Medicare news, Medicare Supplement plans should fare better than Medicare Advantage plans under the Affordability and Accountability Act (aka “ACA” or “Obamacare”).
At least during Obamacare’s initial years, Medicare Supplements should be “largely unaffected.” Even the ACA recommendation that C and F plans add cost-sharing has lost its clout after the National Association of Insurance Commissioners (NAIC) wrote a letter to Health and Human Services director Kathleen Sebelius recommending no cost sharing to plans C and F due to lack of evidence that doing so decrease usage. ACA felt that because there are no copays or deductibles with the C and F plan, Medicare beneficiaries would use the plans excessively.
She responded to NAIC last week accepting the NAIC proposal of no changes in the plans.
Meanwhile, beginning in 2014, Medicare Advantage plans funding will be restructured to remove the 14% “overpayment” to the plans by Medicare that is currently occurring, according to government studies.
According to CSG Acturial, “ongoing funding levels for the Medicare Advantage program will be a political hot button for years to come…A reduction in funding levels would likely lead to an increase in premiums, reduction in benefits, or both.”
Currently, 27% of Medicare beneficiaries are enrolled in Medicare Advantage plans.