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’.

Big Savings

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.

4 Responses to “Will My Medicare Supplemental Insurance Rates Be Higher Under The Affordable Care Act?”

  1. Dennis Byron says:

    According to MedPAC, the nonpartisan Congressional watchdog agency dedicated to Medicare:

    “The Patient Protection and Affordable Care Act of 2010 (PPACA) directs the National Association of Insurance Commissioners (NAIC) to revise standards for medigap policies Plan C and Plan F. These standard (Medigap plan) types are the only ones that cover all Medicare Part B cost sharing. The new law requests the NAIC to revise Plan C and Plan F standards to include requirements for nominal cost sharing to encourage the appropriate use of physicians’ services under Part B. New standards are to be based on evidence published in peer-reviewed journals or current examples used in integrated delivery systems. NAIC’s revised standards are, to the extent practicable, to be in place as of January 1, 2015.”
    (See June 2011 MedPAC report to VP Biden/Speaker Boehner)

    So although premiums might not be higher then they otherwise would have been, benefits would be cut by the Affordable Care Act as described above according to MedPAC. Seniors could no longer buy a Medigap policy that covers all gaps.

    The real question then becomes whether seniors will be allowed to buy another private policy of some kind to make up for these benefit cuts by the Affordable Care Act to Medigap… at any cost. The answer appears to be “NO!”

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  3. Peter Pope says:

    To state that medicare supplement premiums will go down in 2014wil have to be seen but have you checked what the premium rates have done since Obamacare was passed. My supplement went from $138 in 2010 to $162 in 2011 to $210 in 2012. An increase of over 50% in two years.

    What are your thoughts on that?

  4. Your age changed + this was going on before Obamacare. Check other plans.. the different plans(C-D-F-etc) are the same at all insurance companies, but they can CHARGE whatever they want. 10 years ago mine went from $138. to $220. until I found I could leave United and go with MONY & save $75. per month! I changed every 2-3 years to reduce the monthly amounts. Good Luck!!!

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