No one knows for sure how the new health care law will affect anyone. We have seen some ear,y warning signs including the raising of rates. We do not know if cutting down on the fraud and waste in the program will keep the costs under control or lower the cost of the program enough to save it. Medicare Advantage Plans are shielded from the more sweeping changes. The law does not require a person to have a private Medicare plan, only to have health insurance. If the Affordable Care Act does not get overturned or blocked through maneuverings of the legislature, there are a few changes holders are likely to see.
This is happening to everyone with a private insurance policy, not just Medicare Advantage plans. The law gave insurance companies until June of this year to raise their rates without having to justify the increased cost to the government. Rather than go before a government panel to justify a rate increase, companies have raised their rates in anticipation of the new costs of the health care law. Services provided to the policy holder have not changed in most cases. The documentation from a person’s insurance company should spell out what is and isn’t covered.
If a person can no longer afford his Medicare Advantage Plan, he should drop it and switch to regular Medicare. If he meets certain income guidelines he may be eligible for Medicaid. A person keeps Medicare Part A regardless in this situation. The premiums for Medicare Part B are usually lower than the premiums a person pays for a Medicare Advantage Plan. In some cases, a person may be able to lower his premiums by speaking to his agent, but such an outcome is usually unlikely.