Only Minor Tweaking Needed For Medicare Supp Plans
To The Editor:
I read Carroll Busher’s article (“It’s Time To Revise or Scrap The 10 Medicare Supplemental Plans”) with some interest in the July 7 issue of National Underwriter.
I do agree that some changes need to be made to standardized Medicare Supplemental plans, but it should not be more than minor tweaking. You see, seniors are very used to Plans A-J, and with federal prescription drug plans in the works, I feel that Plans H, I and J are on the way out. I really don’t feel that the current system is broken.
I would not put any more benefits for long term care on the current standardized plans primarily because of the cost. Many of my senior clients are having a tough time paying the premiums for their supplements, but they know that they need to protect their savings with insurance.
Busher noted in his article that insurance companies should reduce premiums to reflect the true risk to them. I am sure that he is talking about people buying Plan F over Plan C. Plan C, as you know, does not cover any excess physician fees. Yes, the senior is protected by federal legislation provider caps, but with plan C, they are still exposed to some risk. Also, with most companies, there is very little difference between Plan C and Plan F rates. This is because companies are already aware of the federal caps and their limit of risk.
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In summary, I would leave things like they are. A bigger threat to senior insurance risk is Medicare Choice plans and Select plans because of their limited access to medical providers.
Independent Insurance Agent