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Medicare Blog | Medicare News | Medicare Information

2013 Medicare Changes

Posted by Lauren Hidalgo on Fri, Dec 07, 2012 @ 08:41 AM

Medicare Supplements The Center for Medicare and Medicaid Services (CMS) has announced that Medicare Parts A and B will face modest increases for 2013 deductible and premium rates. The Part A premium for those voluntarily enrolled, uninsured individuals even decreased for next year. Also, while creating a contingency margin for the 2013 Part B premium, the CMS determined that Congress would not allow the impeding physician fee schedule increase or the scheduled sequestration of benefits payment cap to take effect.

Medicare Part A Changes:

This estimates that most hospitals would submit quality data and receive the full market basket payment update and the multifactor productivity adjustment.

  1. 2013 impatient hospital deductible is $1,184
  2. Daily coinsurance amount for days 61 through 90 of hospital stays will be $296
  3. Daily coinsurance amount for lifetime reserve days will be $592
  4. Daily coinsurance amount for beneficiaries receiving extended care services at a skilled nursing facility for days 21 through 100 will be $148.

Medicare Part B Changes:

CMS announced that the standard monthly premium rate for 2013 is $104.90. However, they also noted that those who file individual tax returns with income over $85,000 and those who file joint tax returns with an income greater than $170,000 will pay 35, 50, 65, or even 80 percent more. Premium rates will increase by 5 percent. The annual Part B Deductible for 2013 is $147.

Although, typically Plan F is the more popular plan in the industry, with the 2013 increases Plan G is becoming an even more attractive option. The only difference between a Plan F and a Plan G is that your client will have to pay the Part B Deductible. This means, if the premiums for a Plan F exceed $147 or more than the premiums for a Plan G, the Plan G is the more cost efficient option for your client – especially your healthy clients.

Other things to consider about Plan G:

  • Plan "G" is not exposed to Guarantee Issue. This drastically reduces the potential risk associated with Plans A, C and F.
  • Plan "G" has statistically fewer rate increases. As a result of less bad business, the rate increases are more modest and happen less often than with a Plan "F".>
  • Plan "G" is tougher to replace. Once a client has a Plan "G" and has seen the benefit of paying less over the year they are less likely to be swayed to a Plan "F". Thus, you will have an easier time retaining those clients, resulting in stronger persistency and higher renewals.

Several of our agents have success selling the Forethought Life Medicare Supplement, which has the most competitive Plan G to Plan F ratio. Other products with a Plan G option include Woodmen of the World/Assured Life, Gerber Life, Heartland National, The Manhattan Life, Stonebridge Life, and the Mutual of Omaha Companies.

With AEP ending today and the holidays closing in, now is a great time to take the time to look over your portfolio and decide what products and plans will best suite your clients going into the New Year. If you have any question or would like suggestions on your business plan for next year, please contact your marketer at 1-800-998-7715.

Please give us your feedback!
How do you feel about the impending changes? Do you think you will start selling more Plan G in order to keep costs down for your senior clients?


Source: Wolters Kluwer

Tags: senior market news, Medicare, Senior Market, Medicare News, health care reform

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