Will Medigap Continue To Be Available?
The fear of a possible extinction of the Medigap program exists in the heart of many considering the content of the heath care reform bill. Answers to the three questions below will help put an end to this fear.
How true is the news that more than half a trillion dollars will be cut out of the program?
About $450 billion of the program is actually cut out as a result of the health care reform. However, the program continued availability is not threatened by any of these cuts. Plummeting excess payments to private insurance companies that proffer Medigap Advantage plans has a share of $140 of the cut. Charges that have to do with the way the program pays hospitals and doctors cover $200 of the cut. Tax payers and the health care delivery system stand to benefit from this cut as people will pay less for a more efficient system of health care delivery. It is known that hospital at the moment receive payment from uninsured patients for providing them with health care; this payment provides $35 billion of the cut. This payment need not be collected any longer as insured patients will henceforth be taken care of under the current health care reform. Other charges to the Medigap plan which include abuse, fraud and rooting out waste provide about $80 billion of the cut.
In What Way Does the Bill Cut Abuse, Fraud, and Waste?
The bill makes for better payment accuracy to guarantee that the exact amount is paid and increase financial support and ability to battle waste, abuse and fraud. It make stronger the enforcement and compliance tools for the program, augment funding to sustain these efforts and produce penalties that are new but tougher for those who falsified claims submitted to Medigap. It was estimated by the Congressional Budget Office (CBO) that $1.75 is saved for every $1 spent in combating abuse, fraud, and waste.
Are There Going To Be Any Decrease In My Medigap Benefits?
The simple answer to this question is an emphatic no. Your Medigap benefits will be greatly boosted by this health care reform bill. Preventive care will be made free for Medigap beneficiaries by reason of this bill. It allows government to bargain with drug companies in order to get drugs that are cheaper which will eventually cut down on the cost of prescription drugs. Low-income subsidy programs in Medigap will get improved. Medigap beneficiaries and taxpayers will be protected by this bill as it boosts the financial ability of the program to pay her debts when they become due.