Senior Insurance Blog

It’s been awhile since we reported on health care reform and much has transpired since then. Democrats are suffering losses from both elections and retirement. In December, Rep Bart Gordon (Tenn.) decided not to seek a 14th term, and joins Reps. Dennis Moor (Kan.), John Tanner (Tenn.), and Brian Baird (Wash.) as Democratic members in swing districts who have announced their retirements. Democrats lost gubernatorial elections in New Jersey and Virginia, and most recently lost the special Massachusetts senate race when Republican Scott Brown defeated Democrat Martha Coakley. The latter is significant as it breaks the Democrats' 60-vote, filibuster-proof majority in Washington.

Democrats have been trying to pass health care reform before the swearing in of Scott Brown, but yesterday Nancy Pelosi (D-Calif.) announced that she lacks the votes to quickly move the Senate’s version of health care reform through the House. According to Alan Fram at the Associated Press, Julie Rovner at NPR, and several other analysts, this is a devastating blow to one of President Obama’s most important issues. They also believe the recent elections are the American public’s way of saying it wants more balance in government where legislation isn’t forced through by one party.

The recent setbacks for the Democrats have re-energized Republicans who are now more steadfast in their opposition to the current health care reform bills and other legislative issues promoted by Democrats. Now Democrats are discussing splitting up the health care reform bill into separate pieces and passing each issue one-by-one with the most popular issues coming up for a vote first. Several experts quoted by NPR don’t see this strategy working, as many of the reforms are dependent on others, so even if one gets voted on and passed, it may not be able to be implemented until other reforms are passed too. Splitting up the reforms also makes it easier for opponents to fight them.

Democrats were hoping to wrap up the health care reform issue next month, but with all the recent developments, that isn’t going to happen.

As many of you already know, Medicare's Annual Open Enrollment begins November 15 and will last until the end of the year December 31. The Centers for Medicare & Medicaid Services this week released the final $6.3 million of a total $49.6 million in total funding allocated for State Health Insurance Assistance Programs (SHIPs).

SHIPs use this money to fund local community programs that provide personalized help to Seniors who want to know more about Medicare and other health insurance information. SHIP programs are expected to focus heavily on less fortunate Seniors who typically have little knowledge of the Medicare system and the benefits they are entitled to. For more information on the SHIPs in your state, click here.

For this open enrollment season many in the industry expect to see an increase in Medicare supplement enrollments due to several changes to Medicare Advantage that will occur in 2010. MA beneficiaries can expect to see an average premium increase of nearly 22% (a $7 increase to $39/month). Despite the increases, CMS states that roughly 87% of Medicare beneficiaries will still have access to a MA plan that doesn’t require a premium. Additionally, CMS expects 7% of MA beneficiaries will have to choose a new health plan or a Medicare supplement as their plans (typically PFFS and low enrollment plans) will be discontinued at the end of this year.

CMS will also increase its oversight of Medicare marketing activities. There are now stronger rules governing the commissions that can be paid to independent sales agents and how MA plans identify themselves. CMS will significantly increase its secret shopping activities, including individual marketing sessions. So we advise that you be extra vigilant in your compliance efforts this season. Mutual of Omaha has already published its disenrollment guidelines, which you can check out here.

As usual, Seniors will have access to www.medicare.gov and 1-800-MEDICARE this season. Of course, these are good resources for agents such as yourself, if only to ensure that your information aligns with the official source. For all open enrollment related information, click here.

As always, we’ll keep you updated with the latest news and product information to help make this open enrollment season a successful one for your organization.

Sources: CMS, Senior Journal

On Wednesday, Senator Max Baucus (D-Montana) introduced a new bill that primarily seeks to make health care coverage mandatory, and to do so in a way that would not add to the federal deficit. What’s even more interesting is what is not in the bill – a public option. The prominent Democratic bill symbolizes how divisive an issue a public option is even among the Democratic party. Despite the lack of a public option, the bill has no Republican support.

The bill is said to cost $856 billion over 10 years and will be financed through $500 billion dollars in spending cuts, much of it coming from Medicare. An additional $350 billion will be generated through new taxes and fees. Many of the new fees are directed toward private medical companies ranging from insurance companies to medical device manufacturers to pharmaceutical companies. For the official release and details of the bill click here.

In other news:

More Seniors to Work Beyond 65: According to a study by the University of Michigan Institute for Social Research, 57% of older Americans (aged 51 and older) plan to work full-time beyond age 65 (up from 47% in 2008), while 65 plan to work past age 62 (up from 60% in 2008). The survey also found that stock investment value among older Americans declined between 20-30% in 2008.

Baby Boomers Rival Seniors for Most Costly: According to the Agency for Health Care Research, hospitals spent nearly the same to care for baby boomers (54-64) as they did for seniors (65 and older). The numbers? Baby boomers: $56 billion – Seniors: $59 billion. The average hospital stay for a baby boomer costs $11,900, with seniors slightly higher. Males in both groups saw higher hospitalization rates than females (151.7 stays per 1000 vs. 140.4 stays per 1000).

Money Talks: According to the non-partisan Public Campaign Action Fund, 14 of the biggest health insurance companies have spent roughly $200 million to influence the health care reform debate since January 2009. The figure was derived by analyzing all forms of political spending, such as campaign contributions and lobbying expenses.

Insurance Companies to Lose Anti-trust Exemption?: According to ModernHealthcare.com, Democratic politicians have introduced bills that would strike down the McCarran-Ferguson Act of 1945 that is cited by many health providers as allowing consolidation among major health insurance companies that would normally breach anti-trust laws. Similar proposals have been introduced before, but supporters are hopeful the issue will get more attention in the current political climate.

The Gerber Life Medicare supplement launch has no doubt inundated your inbox with about 50 emails regarding this product from various entities, so if you’ve made it to this page, I want to personally thank you. Like you, everyone here at PSM is seeing the famous baby face in their dreams at night with the massive amount of activity that has taken place since Tuesday. Our phones have been ringing constantly, and our website has seen 10,000 page views since the release of the product. If you haven’t seen our national press release, check it out at: http://www.prweb.com/releases/Medicare-Supplement/Gerber-Life/prweb2837364.htm If you are still on the fence about this product, we encourage you to call us to learn why this product is set to be one of the most competitive in the market. For reference here is a direct link to our Gerber Life Medicare supplement landing page with more links to rates and contracting information.

Weekly Recap:

Remembering 9/11: PSM will take a moment of silence today to honor those who lost their lives during the events of 9/11.

President Obama’s “Full-Court Press”: Beginning with addressing a joint session of Congress on Wednesday night, President Obama will be making several speeches detailing his vision for health care reform. Of course, the biggest news stemming from the speech seems to be the outburst from Joe Wilson (R-SC) who shouted “You lie” when Obama stated that his health reform vision doesn’t include coverage of illegal immigrants. Here are some of the other details stemming from the speech:

* No one will lose health insurance coverage if they already have coverage.

* Insurance companies will not be able to deny individuals coverage because of pre-existing conditions.

* Inclusion of Sen. McCain’s (R-AZ) plan to cover people without insurance if they can’t afford it and can’t wait four years until the Health Insurance Exchange is established.

* The majority of health care reform will be paid for by cutting Medicare costs.

* The most expensive insurance plans will be taxed, with the revenue paying for reform.

* Medicare malpractice reform is another possible way to pay for reform.

* A public option is not mandatory.

* Those who already have health insurance through a job, Medicare, Medicaid or the VA, will not be required to change coverage or doctors.

* Insurers will be required to cover basic checkups and preventive care.

* Health care reform will not result in euthanasia or death panels for the elderly.

* Out-of-pocket expenses will be capped.

Chronic Conditions Highest Among Elderly Women: Last week, a Health and Human Services report showed that chronic conditions are most prevalent among women because they live longer. This may seem like a no-brainer, but the report does have some very interesting quantitative data that you may find useful to present to your clients. Here are some of the most interesting points:

* Among people age 80 and older, 93% have at least one chronic condition and 78% have two more.

* The growth in Medicare Part B premiums from 2000 to 2018 is predicted to cost seniors an additional $1,577 per year out-of-pocket.

* 98% of Medicare spending is for beneficiaries with one or more chronic conditions.

* Senior women spent on average 17 percent of their income on health care in 2005.

For this and other HHS reports click here.

On Tuesday, a new Medicare Supplement product will be released by an "A" rated (A.M. Best) company that has one of the most recognizable brands among Americans of all ages. This new product is filed for approval in 32 states and will eventually roll out to even more. As an exclusive distribution partner, we look forward to releasing details on this new product on Tuesday. In the meantime, have a great Labor Day weekend!

Weekly Recap

President Obama to Speak Out on the 9th: He will give a speech on health care reform to a joint session of Congress next Wednesday in an attempt to refocus the national conversation on healthcare. NPR listed several poll results that show opposition to his health reform goals has grown. Three of the polls cited show opposition is around 50% as of the last week of August. White House officials say this speech will provide a comprehensive explanation of the President’s health care plans which have been ambiguous thus far.

The Compromise: In an effort to make some progress on the healthcare issue, President Obama and Republican Senator Olympia Snow are in serious discussions regarding a new health care reform plan. At the center of the compromise is a public healthcare option “trip wire”. Under this plan, a public option would only be implemented if certain performance criteria are not met. Another major compromise would be establishing a law barring insurance companies from denying coverage to people with pre-existing conditions. This plan is intended to win over 1 or 2 Republican votes and most of the conservative democrats.

FTC Bans Commercial Robocalls: For those of you who use autodialers or robocalls to contact consumers, you will want to take a look at this page: http://www.ftc.gov/opa/2008/08/tsr.shtm Violators of this new law will face penalties of up to $16,000 per call. After September 1, 2009, consumers who receive prerecorded telemarketing calls, but have not agreed to get them can file a complaint with the FTC who will then investigate.

Medicare Advantage/Part D Enrollment Begins Nov. 15: Medicare Advantage marketing has many requirements, so we encourage all our agents to get caught up on all the new rules to make sure the enrollment period is spent writing business and not putting out compliance fires. Contact your PSM marketer today for a list of resources where you can get the training you need.

Earlier this week, the White House made a bold announcement to possibly utilize a political process called “reconciliation” to bypass the need for bipartisan support of health care reform legislation in the Senate. With this process, only a simple majority of 51 votes is needed to get a vote on the senate floor rather than the normal 60. Despite the threat, the White House says it is still willing to listen to any perspective and do its best to gain bipartisan support.

According to CNN, a Democratic-only plan would not be supported by the majority of the American public. CNN cited a Quinnipiac University poll that shows 59% of Americans are opposed to a Democratic-only bill with 36% in support. Perception of Republican efforts at health care reform is worse with an NBC News poll showing approval by only 21% of Americans.

Currently, if the White House does choose to execute reconciliation, it will still have to work hard to gain consensus among its own party, as there is still much debate between liberal and conservative Democrats. We’ll keep you posted.

In other news:

AP reports that Medicare drug premiums will see a slight increase in 2010, which will equate to about a $2 rise in seniors’ monthly payment for prescription drug coverage next year. CMS announced that the average monthly premium will be about $30 next year.

An LTC insurance study by the American Association for Long-Term Care Insurance shows that in 2008 nearly 50% of all buyers were under 65, while roughly 10% were between 45 and 54. 66% of buyers were women, and the average single premium was $70,975. This study analyzed more than 5,000 new policies. The overall market outlook from the group is positive with sales expected to increase in the coming years.

Lastly, I came across an interesting press release by ProspectZone on InsuranceNewsNet.com. It discusses how calling new insurance leads in the evenings and weekends is a better way to capitalize on those leads rather than calling during normal business hours. For those of you who do this, do you agree? Do you get a better response when contacting clients during off hours?

Sources: CNN, AP, SMA, INN

Town halls across the country have become the primary battlegrounds of the health care reform debate, with both sides engaging in heated exchanges including shouting, derogatory remarks, and even physical conflict.

Senior citizens have emerged as one of the most outspoken groups, as they are amassing in town hall meetings across the country and voicing their concerns about the impact reform will have on the current Medicare system. According to a Yahoo News article, several polls show senior citizens largely disapprove of current health care reform ideas. The article cited a July 31 Gallup Poll that found just 20% of senior citizens believe health care reform will improve their own situations.

As the highest voting demographic of the country, it appears seniors are finally being heard as President Obama addressed them directly in his own town hall meeting on Tuesday. President Obama attempted to allay those concerns by stating “We are not talking about cutting Medicare benefits.” With the Obama administration cutting billions from Medicare, many seniors remain skeptical.

Supporters of reform explain that the proposed changes to Medicare would not result in a loss of care; rather it would lead to a more affordable system that makes drugs more affordable and eliminates co-pays for preventative care like cancer screenings. Obama explained that eliminating the $156 billion given to private insurance companies for Medicare Advantage would help make this possible. Reform supporters are trying to convince seniors that cutting the costs of Medicare will ensure its long-term survival.

Critics of health care reform are informing seniors that the proposed $380 billion cut to Medicare will lead to long waits, higher premiums, doctors dropping patients, and less coverage. Some critics are going to the extreme to leverage seniors’ fears by explaining that reform would institute medical “death panels” that would have power to stop treatment if it became too expensive and force such patients into end-of-life options.

Obama addressed this by explaining that Medicare would simply reimburse doctors for counseling patients who choose to receive counseling on end-of-life options like hospice care. Obama also pointed out that some republican senators support this.

With the 2010 elections nearing, both sides of the health care reform issue are out in full force trying to convince seniors to vote for candidates that support their respective views. With only 20% of seniors feeling positive about reform, a lot of work remains for those in favor of it.

Sources: Yahoo News, MedPageToday, CNN

This week most of you likely watched President Obama's prime time speech on health care reform. His speech is apart of his continued attempt to gain some action on the issue. One of the overall themes of the speech was that America is doomed to fiscal disaster if the current system is not changed. He made the analogy that America "...may go the way of GM; paying more, getting less, and going broke."

A key point of his speech was that his vision allows Americans to keep the plan they have if they like it. He made some pretty brash comments regarding special interest groups who he says are using fear and misinformation to trick the American public into thinking his reform plan will socialize medicine.

President Obama also directly addressed doctors and the issues facing them. Though he didn't get into the details, he said his vision allows doctors to focus on healing rather than on paperwork, and that the system can be made much more efficient through using technology to improve information flow to doctors about what works. He received some boos when he said he doesn't support caps on malpractice awards.

A Health Insurance Exchange system was another big part of President Obama's speech. This system would mimic the current program for federal employees where they can choose from a list of insurance plans approved by the government. He strongly voiced his support that a public option be included in this system as a means of promoting competition in the marketplace. The President then spent the last part of his speech explaining how he proposes to save nearly $1 trillion to pay for his vision.

One night after President Obama's speech, Senate Majority Leader Harry Reid announced that a compromise on health care reform legislation is unlikely before the fall. This comes as a setback for the president, who has been aggressively pushing the legislative branch of government to meet an August deadline. President Obama is now reiterating his intent to sign a health care reform bill by the end of the year. Senator Reid cited Republicans as the cause of the delay, with Republicans asking for more time to work out financial issues.

Let us know what you think of President Obama's speech and the ongoing health care reform issue in our comments section.

Entry sources: ABC News, CNN

Health care reform continues to be at the forefront of legislative agenda. No doubt you have heard or read many reports through various news outlets. With so much going on in recent days, it can get pretty confusing. The biggest news thus far is the advancement of a bill in the U.S. House of Representatives by two committees.

The 1,018-page bill maintains the employer-based health insurance system, and extends coverage to all uninsured with a public option. It also requires private insurers to offer policies to all willing buyers and bars them from charging higher premiums based on pre-existing conditions.

To pay for it all, the bill requires individuals who earn enough to file taxes to have insurance or pay a 2.5% penalty on the difference between one's adjusted gross income and the tax filing threshold. It also requires that businesses provide insurance, and that a tax be imposed on such employer-provided benefits. Businesses that don't will pay a payroll tax ranging from 2-8%. The bill also implements a 1% to 5.4% surtax on individuals who make $280,000 or more annually. This is all in addition to the Medicare and Medicaid cuts discussed here previously.

Though the bill was pushed through by House democrats, it was met with criticism by two unlikely, but influential individuals - Douglas Elmendorf, chief of the Congressional Budget Office and President Obama. President Obama opposes taxing employer-provided benefits, and Mr. Elmendorf says the overall bill doesn't reduce the cost of health care to the federal budget over the long-term. Politicians drafting the bill are now re-working the bill to appease President Obama and other influential critics. According to the Chairman of the Senate Finance Committee, Sen. Max Baucus (D-Montana) "Basically, the president is not helping us."

On another subject, Precision Senior Marketing is sponsoring the "Nature University Contest." To enter, submit a short essay of 250 or more words demonstrating leadership. Winners will have their essay featured on the globally marketed site, as well as win either a $150, $100, or $50 Amazon.com gift certificate. For more information: http://natureuniversity.info/

Blog entry sources: Wall Street Journal, CNN, Associated Press

As you all know, identity theft is a rapidly growing problem. The Javelin Strategy and Research Center found that 10 million Americans fell victim to this crime in 2008. You may think identify theft is primarily caused by using the latest and greatest technology, but according to the Center, low-tech methods are still the most popular among identify thieves. Online methods only account for 11% of all cases.

One growing, low-tech method used to commit identity theft that may directly affect you are thieves posing as state insurance department employees. Recently, Oklahoma Insurance Commissioner Kim Holland warned insurance producers and adjusters to beware of scammers posing as state insurance department employees seeking personal information. According to reports, these fake employees called insurance agents and asked them to fax personal tax information. Similar cases were also reported in Nevada and California where imposters were calling agents and telling them that their licenses were going to be suspended for filing improper paperwork. The imposters then would ask for personal information, such as birth dates, social security numbers, and credit card info to correct the problem.

We remind you to remain vigilant about protecting your personal information. Here are several actions you can take to minimize your chance of becoming a victim (source: www.ftc.gov):

• Review your credit reports at least once a year, or every three months if you have already been victimized
  
  
• Place passwords on your credit card, bank, and phone accounts; don't use easily available info for your passwords such as maiden names, birth dates, phone numbers, and last four of SSN
  
  
• Secure personal information at home, especially if you live with others
  
  
• Always ask how your personal information will be secured by those who require it to do business
  
  
• Don't give out personal information over the phone, through the mail, or on the Internet unless you've initiated contact or have established trust with the entity you are dealing with
  
  
• Shred your docs with sensitive info

For a full list of actions you can take to help prevent identify theft, click here.