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.
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
To The Editor:
Jack Bobo continues to be uninformed as revealed in his column (“A Commentary on ‘Wealth and Our Commonwealth’”) in the April 28 issue of National Underwriter.
He pontificates that we should all enjoy paying confiscatory taxes because it repays the “debt” we owe to “the environment that allowed wealth to be accumulated in the first place.”
Nothing can be further from the truth. Taxes paid to the federal government disappear. Wealth is accumulated in spite of skyrocketing taxes.
His sources are Bill Gates Sr. and Chuck Collins. Gates Sr.’s only claim to financial fame is that he is the lucky father of junior. He never created anything except an exceptional son. Collins’ history is that of a government bureaucrat on the dole.
If Jack really believes what he prints, he should change his estate planning and leave everything to the IRS so that things will improve for his fellow citizens.
Robert B. Shearer, CLU, ChFC
Reproduced from National Underwriter Life & Health/Financial Services Edition, July 28, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.