Remember HCTC
subsidized benefits are slated to end Dec 31, 2013
++++++++++++++++++++++++++++++++++++++++++++++++++++
Sent: Thursday, August 01, 2013 10:06 PM
Subject: Some of the changes to Retiree Healthcare coming in 2014 and
beyond
----- Forwarded Message -----
From: Cathy Cone <mailto:cathy.cone@coneinsurance.com>
To:
Sent: Sunday, July 28, 2013 2:40 AM
Subject: Some of the changes to Retiree Healthcare coming in 2014 and beyond
I have put together some information I have gathered over the past few months due to my travels to Washington, lobbying on behalf of Retirees regarding Healthcare for those Retirees under 65, as well as those on Medicare. I know that it is no surprise to anyone to hear that Washington is in gridlock but seeing it with myself was an eye-opener. The losers in all this are the American people. If you think it is important, please pass it along to others.
Following my return and after discussions with various healthcare providers along with some research, I have complied the information that I believe to be accurate in describing what Retirees can expect over the next few years with regard to their healthcare and the rising cost Retirees need to prepare for because it is surely coming. I believe Retirees have been pretty much sold down the river in many ways. All the promises of how great it is going to be to have a closed ╲donut hole╡ or ╲coverage gap╡ and how all that ╲free╡ preventative care was going to be great is far from FREE! The fact that 93% of the Medicare retirees will be paying for the 7% of Medicare retirees that get into the donut hole is staggering! The 716 billion dollars taken out of Medicare is apparently going to pay for those that have no insurance and to balance the budget. So much for the budgets of Retirees on fixed incomes.
From: Cathy Cone <mailto:cathy.cone@coneinsurance.com>
To:
Sent: Sunday, July 28, 2013 2:40 AM
Subject: Some of the changes to Retiree Healthcare coming in 2014 and beyond
I have put together some information I have gathered over the past few months due to my travels to Washington, lobbying on behalf of Retirees regarding Healthcare for those Retirees under 65, as well as those on Medicare. I know that it is no surprise to anyone to hear that Washington is in gridlock but seeing it with myself was an eye-opener. The losers in all this are the American people. If you think it is important, please pass it along to others.
Following my return and after discussions with various healthcare providers along with some research, I have complied the information that I believe to be accurate in describing what Retirees can expect over the next few years with regard to their healthcare and the rising cost Retirees need to prepare for because it is surely coming. I believe Retirees have been pretty much sold down the river in many ways. All the promises of how great it is going to be to have a closed ╲donut hole╡ or ╲coverage gap╡ and how all that ╲free╡ preventative care was going to be great is far from FREE! The fact that 93% of the Medicare retirees will be paying for the 7% of Medicare retirees that get into the donut hole is staggering! The 716 billion dollars taken out of Medicare is apparently going to pay for those that have no insurance and to balance the budget. So much for the budgets of Retirees on fixed incomes.
Affordable Care Act Impact to Medicare Retirees
Americans differ on Medicare
reform. They may disagree on the right future for Medicare. But one thing is
certain: Under the current laws regarding the Affordable Care Act (ACA),
seniors will pay more˜much more˜and they will pay this steep price in many dy
different ways, including a loss of access to care resulting from continuing to
cut the money paid to doctors and other medical professionals which results in
the cutting back of Medicare practices or, in some cases eliminating a doctors
Medicare practice altogether. Doctors and other medical professionals are
facing a bleak future in the future, due to continued reimbursement reductions and
the higher administrative costs of complying with an even larger set of
increasingly complex rules and reporting requirements. They have
already cut Medicare Part A and Medicare Advantage provider-reimbursement rates
to levels that even government actuaries have stated, in print, to be
unrealistic. They have instituted a new Medicare tax on the ╲unearned╡
income of upper-income Americans (such as investment income) that will not even
be exclusively used to enhance the solvency of Medicare. The vaunted
Medicare ╲savings╡ from Medicare provider payment reductions and other
changes enacted through the PPACA will also finance health insurance coverage
mandated by the ACA. The bottom line: Medicare ╲as we know it╡ is
already a thing of the past.
A Few Examples
1) Huge payment reductions that
reduce access to care ˆ the Affordable
Care Act will reduce Medicare reimbursements by $716 billion over 10 years.
These cuts will hit Part A providers such as hospitals, nursing homes, skilled
nursing facilities, and hospices, along with Medicare Advantage plans â•„ not
due to eliminating ╲waste, fraud and abuse╡. Providers will not be
able to sustain continuing negative margins due to the cuts and will have
to withdraw from serving Medicare beneficiaries. It is estimated
that there will be 15% fewer providers by 2019, 25% by 2030, and 40% fewer
providers by 2050
2) Medicare ╲savings╡ are spent on other parts of the Affordable Care Act. Medicare payroll taxes will increase from 2.9% to 3.8% for high income earners and also extends the 3.8% Medicare tax to investment income. This is the largest tax increase in The Affordable Care Act costing almost $320 billion, and it claims to increase the solvency of the Part A trust fund, but that simply is not true. The new tax revenue will be paying for new entitlement spending in The Affordable Care Act.
3) Medicare Advantage Cuts ˆ $156 Billion will be cut from the program in the next 8 years. Cuts will come by increasing out of pocket costs and imposing a special fee to all health insurance plans. 27% of all Medicare beneficiaries are enrolled in a Medicare Advantage plans, and in 3 years this number will be reduced by 50% due to the rising premium costs, reduced benefits, and plans no longer being offered/available. The alternative will be to join a less generous, traditional Medicare plan with bigger gaps in coverage.
4) Higher Part B Premiums ˆ Means testing will be useed to determine new Part B premiums. Under current law, there are four income adjusted brackets, but will be expanded to nine brackets. These new brackets will result in 25% of all beneficiaries to pay a higher monthly premium. In 2014, beneficiaries will pay an average of $340 more a year in monthly premiums, and by 2017 that number will increase to more than $400.
5) New Fees ˆ For new baby boommers aging into Medicare, starting in 2017, there is a $25 increase in the Part B deductible. By 2021, the Part B upcharge will be $75 plus a $100 co-payment for home health services in certain cases. In addition, a premium surcharge will be assessed to all new beneficiaries who choose a Medigap plan that includes first-dollar or near first-dollar coverage. This surcharge will result in a 15% premium increase for beneficiaries.
6) Prescription Drug Costs ˆ The donut hole is slated to close by 2020,, which results in a 9% average premium increase for all beneficiaries to do so even though this benefits only 7.4% of the total Medicare population.
Today in Medicare Part D, private plans and drug manufacturers negotiate a discounted price; it is a market price. The government is not involved at all in these negotiations. The result: Market efficiencies have been dramatically successful in controlling Medicare drug costs and stabilizing the growth in seniorsâ•˙ premiums.
The Presidentâ•˙s recent budget proposal, however, would require drug companies to pay the government the difference between the privately negotiated Medicare price and the price (the ╲rebate╡) the government sets for the sale of drugs in the Medicaid program for low-income Medicare beneficiaries. These seniors today receive subsidies, and they account for about 30 percent of all Medicare Part D enrollees.
The Presidentâ•˙s proposed Medicare ╲rebate╡ would act as a tax on the drug companies doing business with the federal government, but it would also function as a price control on Medicare drugs. In other words, the new rebate policy would distort the Part D market by fixing artificially low prices for one group of beneficiaries, and creating powerful incentives for the companies to try to make up the revenue losses by charging higher prices in other sectors of the Medicare market. This means that most seniors would experience increased premiums anywhere between 20 percent and 40 percent.
7) The ominous and looming power of IPAB, a board formed to oversee the Affordable Care Act, will consist of 15 unelected and unaccountable bureaucrats, charged with meeting a newly created budget target in Medicare. When Medicare spending surpasses the target, IPAB will have to make recommendations to reduce Medicare spending. The trustees project the much-hated IPAB will need to step up and make recommendations for the first time in 2016.
Information for 2014 Medicare Changes:
2013
2014
+/- Percent Increase
Part A Deductible
$1,156
$1,336
+ 13.5%
Part A Hospital Coinsurance after day 60
$289 per day
$334 per day
+ 15.6%
Part B Premiums
$104.90
$128.20
+ 25.3%
Part B Deductible
$140
$180
+ 28.6%
Health Insurer Fee for Medigap plans
-
2.6%
+ 2.6%
Health Insurer Fee for Medicare Advantage Plans
-
$25-$32 per month
+ 80-140%
As you can see, we seniors have a tough and costly road ahead if the information we have gathered is any indication. Looks like Baby Boomers have a lot of unfunded promises that we will not be collecting. Affordable Healthcare when we reach Medicare age seems to be one of them and is now in our rearview mirror!
We will all see new taxes on our insurance programs due to the ACA and they will be between 2-5% (taxes alone, not counting the increased cost of healthcare itself) so plan on higher Medical cost for your premiums in 2014 and beyond and start today, saving for it.
If you are looking for excellent Medicare Insurance programs, with several options which will allow you to tailor your healthcare to your own specific needs, we have a plan for you! The Voluntary Benefit Trust for Airline Retirees (VBTAR) has engaged Cone Insurance Group as the broker and we have been serving Delta Retirees and other Airline Retirees in the airline industry for more than 3 years. If you want to learn more about the plans offered through the trust or join us the first Tuesday and Thursday of each month to go over ╲Aging up to Medicare╡ and detailed information about the plans offered through the trust, please participate in our webinar or join us by Conference Call. The information is also available on our website, http://www.conebenefits.com/ and click on Voluntary Benefit Trust for Airline Retirees.
2) Medicare ╲savings╡ are spent on other parts of the Affordable Care Act. Medicare payroll taxes will increase from 2.9% to 3.8% for high income earners and also extends the 3.8% Medicare tax to investment income. This is the largest tax increase in The Affordable Care Act costing almost $320 billion, and it claims to increase the solvency of the Part A trust fund, but that simply is not true. The new tax revenue will be paying for new entitlement spending in The Affordable Care Act.
3) Medicare Advantage Cuts ˆ $156 Billion will be cut from the program in the next 8 years. Cuts will come by increasing out of pocket costs and imposing a special fee to all health insurance plans. 27% of all Medicare beneficiaries are enrolled in a Medicare Advantage plans, and in 3 years this number will be reduced by 50% due to the rising premium costs, reduced benefits, and plans no longer being offered/available. The alternative will be to join a less generous, traditional Medicare plan with bigger gaps in coverage.
4) Higher Part B Premiums ˆ Means testing will be useed to determine new Part B premiums. Under current law, there are four income adjusted brackets, but will be expanded to nine brackets. These new brackets will result in 25% of all beneficiaries to pay a higher monthly premium. In 2014, beneficiaries will pay an average of $340 more a year in monthly premiums, and by 2017 that number will increase to more than $400.
5) New Fees ˆ For new baby boommers aging into Medicare, starting in 2017, there is a $25 increase in the Part B deductible. By 2021, the Part B upcharge will be $75 plus a $100 co-payment for home health services in certain cases. In addition, a premium surcharge will be assessed to all new beneficiaries who choose a Medigap plan that includes first-dollar or near first-dollar coverage. This surcharge will result in a 15% premium increase for beneficiaries.
6) Prescription Drug Costs ˆ The donut hole is slated to close by 2020,, which results in a 9% average premium increase for all beneficiaries to do so even though this benefits only 7.4% of the total Medicare population.
Today in Medicare Part D, private plans and drug manufacturers negotiate a discounted price; it is a market price. The government is not involved at all in these negotiations. The result: Market efficiencies have been dramatically successful in controlling Medicare drug costs and stabilizing the growth in seniorsâ•˙ premiums.
The Presidentâ•˙s recent budget proposal, however, would require drug companies to pay the government the difference between the privately negotiated Medicare price and the price (the ╲rebate╡) the government sets for the sale of drugs in the Medicaid program for low-income Medicare beneficiaries. These seniors today receive subsidies, and they account for about 30 percent of all Medicare Part D enrollees.
The Presidentâ•˙s proposed Medicare ╲rebate╡ would act as a tax on the drug companies doing business with the federal government, but it would also function as a price control on Medicare drugs. In other words, the new rebate policy would distort the Part D market by fixing artificially low prices for one group of beneficiaries, and creating powerful incentives for the companies to try to make up the revenue losses by charging higher prices in other sectors of the Medicare market. This means that most seniors would experience increased premiums anywhere between 20 percent and 40 percent.
7) The ominous and looming power of IPAB, a board formed to oversee the Affordable Care Act, will consist of 15 unelected and unaccountable bureaucrats, charged with meeting a newly created budget target in Medicare. When Medicare spending surpasses the target, IPAB will have to make recommendations to reduce Medicare spending. The trustees project the much-hated IPAB will need to step up and make recommendations for the first time in 2016.
Information for 2014 Medicare Changes:
2013
2014
+/- Percent Increase
Part A Deductible
$1,156
$1,336
+ 13.5%
Part A Hospital Coinsurance after day 60
$289 per day
$334 per day
+ 15.6%
Part B Premiums
$104.90
$128.20
+ 25.3%
Part B Deductible
$140
$180
+ 28.6%
Health Insurer Fee for Medigap plans
-
2.6%
+ 2.6%
Health Insurer Fee for Medicare Advantage Plans
-
$25-$32 per month
+ 80-140%
As you can see, we seniors have a tough and costly road ahead if the information we have gathered is any indication. Looks like Baby Boomers have a lot of unfunded promises that we will not be collecting. Affordable Healthcare when we reach Medicare age seems to be one of them and is now in our rearview mirror!
We will all see new taxes on our insurance programs due to the ACA and they will be between 2-5% (taxes alone, not counting the increased cost of healthcare itself) so plan on higher Medical cost for your premiums in 2014 and beyond and start today, saving for it.
If you are looking for excellent Medicare Insurance programs, with several options which will allow you to tailor your healthcare to your own specific needs, we have a plan for you! The Voluntary Benefit Trust for Airline Retirees (VBTAR) has engaged Cone Insurance Group as the broker and we have been serving Delta Retirees and other Airline Retirees in the airline industry for more than 3 years. If you want to learn more about the plans offered through the trust or join us the first Tuesday and Thursday of each month to go over ╲Aging up to Medicare╡ and detailed information about the plans offered through the trust, please participate in our webinar or join us by Conference Call. The information is also available on our website, http://www.conebenefits.com/ and click on Voluntary Benefit Trust for Airline Retirees.
Join our Medicare webinar/conference call the first Tuesday
of each month, 11:00am EST!
Test out the link before using your Internet Explorer Browser. Participants can join the webinar directly by clicking here:
https://www.mymeetings.com/nc/join.php?i=RG9304800&p=9384757&t=c
Or dial into the conference call 800-857-3005 for the audio portion only using passcode 9384757
Want more information about our health care plans? Join our webinar/conference call the first Thursday 11:00 EST!
Conference call starts at 11:00am EST. Test out the link now using an Internet Explorer browser! Click here:
https://www.mymeetings.com/emeet/join/index.jsp?customHeader=mymeetings&netId=RH4471346&netPass=2126127&netType=conference&acceptTerms=on
If you can't get the link to work, you can dial in at 800-857-3005 for the audio portion using the passcode 2126127
Please remember, the ╲my meeting.com╡ link will not be active until 1 hour prior to the call
Test out the link before using your Internet Explorer Browser. Participants can join the webinar directly by clicking here:
https://www.mymeetings.com/nc/join.php?i=RG9304800&p=9384757&t=c
Or dial into the conference call 800-857-3005 for the audio portion only using passcode 9384757
Want more information about our health care plans? Join our webinar/conference call the first Thursday 11:00 EST!
Conference call starts at 11:00am EST. Test out the link now using an Internet Explorer browser! Click here:
https://www.mymeetings.com/emeet/join/index.jsp?customHeader=mymeetings&netId=RH4471346&netPass=2126127&netType=conference&acceptTerms=on
If you can't get the link to work, you can dial in at 800-857-3005 for the audio portion using the passcode 2126127
Please remember, the ╲my meeting.com╡ link will not be active until 1 hour prior to the call
As a Medicare eligible
participant, because this is a group plan, you have the ability to enroll in
this Trust at any time, you donâ•˙t have to wait for open enrollment
in the fall! There are no preexisting conditions that need to be met as
long as you are coming from existing coverage as a Medicare participant or just
becoming Medicare eligible.
Delta Retirees are eligible for subsidies provided through this
Trust to help pay for the cost of their healthcare.
You can call our Medicare Call Center for details, Benistar @ 1-800-236-4782
Thanks Much! Cathy Cone, Cone Insurance Group
http://www.conebenefits.com/
832-541-8842 (cell)
713-463-8575 (office)
You can call our Medicare Call Center for details, Benistar @ 1-800-236-4782
Thanks Much! Cathy Cone, Cone Insurance Group
http://www.conebenefits.com/
832-541-8842 (cell)
713-463-8575 (office)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Full post disclaimer in left column. PCN Home Page is located at: http://pcn.homestead.com/home01.html
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