Wednesday, November 19, 2008

Return to Medicare Supplement

With the dawn of a new administration, Medicare Insurance plans (aka Medicare Advantage) may fall under close scrutiny in the months and years to come. There are many industry insiders who are speculating that the highly subsidized plans may be cut or even cut off. It is hard for me to imagine that the new administration would leave millions of Medicare Beneficiaries without adequate coverage, but the indicators are, there may indeed be additional cost sharing.

If this happens, it could actually be a boon to traditional Medicare Supplement companies and marketing organizations. If people are forced to carry more of the cost for MA (usually also with many restrictions), many may simply choose to return to Medigap coverage.

Tony