Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktI’ve posted quite a bit over at PL on how first-dollar coverage can drive costs. One of the cost savings ideas being kicked around is to limit the ability of Medicare Supplemental Policies (Medigap) to offer such plans. The state insurance commissioners are opposed to the idea.
This is but a small example of how difficult it can be to change Medicare benefits, even in an area that is broadly considered to need reform.
See the Hill for details and a copy of the NAIC’s letter (PDF) to the super committee
http://thehill.com/blogs/healthwatch/medicare/183039-naic-dont-require-medigap-cost-sharing
I’ll have more thoughts on MedPAC’s recent meeting next week.
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All Things in Moderation 
"Now, by federal law, in the name of deficit reduction, these senior citizen Medicare-eligible citizens would not have a benefit for which they have already paid, in many cases, for years."—-You will have to explain this to me; I don't get it.If the premium paid is incorporating that first-dollar cost, aren't premiums paid monthly? So, what benefit could they be losing that has already been paid for years?What am I missing?
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Looking at the letter, I think they're getting at the guaranteed renewal for Medigap plans. Basically these policies have been auto-renewed for so long that any changes is going to cause a confusion for people. I don't think it's that compelling of an argument. but they're also thinking about applying the change to current plans, so there could be some sort of pro-rating going on and the associated confusion. I'm more sympathetic to that.
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NVH , if medigap is not subsidized how does fed save on a copay?
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Fed will save not on the copayment, but through decreased utilization. lots of data indicating that these policies push up the level of unnecessary tests and the like. by removing the deductible and co-insurance, as some medigap plans to, you eliminate key tool medicare has to control utilization. to be sure, a lot of this is physician/provider driven — but not all of it.
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Thanks.
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NoVAIn other words medigap insurance doesn't have any copays now? I didn't know that actually. I know seniors have copays so is that for straight medicare? I agree there is definite over-utilization, and not just in medicare, but I'm not sure how this would work. If it reduces costs overall of course that's a good thing, if it's just cost shifting then I'm not so sure about it. Could it be means tested in some way I wonder?
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I have an interesting personal insurance story to tell, which I'll leave on this thread later. Talk about confusion and I don't even consider myself a senior yet, although others might disagree.
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Depends on the plan — there are 10+ with various cost structures. but i think all of them reduce your exposure to the standard FFS Part A and B cost sharing. http://www.medicare.gov/publications/pubs/pdf/02110.pdf
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