Will My Medicare Supplemental Insurance Rates Be Higher Under The Affordable Care Act?
Seniors want to know if they'll pay higher Medicare supplement insurance rates under Obamacare.
With so much confusion regarding the Patient Protection and Affordable Care Act, also known as Obamacare, it's easy to see why seniors would wonder about their Medicare supplemental insurance. The most common questions seniors are asking is whether their premiums will go up once the Affordable Care Act is full implemented in 2014.
Medicare Supplement Insurance Rates
The Affordable Care Act reduces the cost of health care for seniors. It also shrinks the 'donut hole' where the government does not cover expenses. By reducing costs by trimming administrative fees and closing the 'donut hole', the cost per senior is reduced, meaning more benefits are available for the same amount of money.
Since the cost of health care decreases under the Affordable Care Act, the Medicare supplement insurance rates should decrease as well for seniors. So long as the Affordable Care Act remains in effect, seniors will pay less for health care while receiving more coverage benefits.
Medicare Premium Costs
According to PolitiFact, despite what you may have heard from certain political candidates, the Affordable Care Act reduces the premium costs associated with Medicare. The $716 billion in spending cuts mention in political ads comes from administrative costs, such as file clerks and insurance salesmen, not from benefits. These reductions mean seniors will spend fewer dollars on supplement insurance, Medicare, prescription drugs, and testing, even while in the 'donut hole'.
With lower costs for Medicare and a smaller 'donut hole', it should be no surprise seniors can save on their supplemental insurance. Medicare will start covering more costs and Medicare supplement insurance rates will drop. The need for Medicare supplemental insurance remains, even as the cost decreases.