Healthcare inflation is affecting some of America’s most hard working individuals, and price increases for Medicare Supplement Insurance are a part of the problem. Over the past ten years, it has become standard practice among insurance companies to increase monthly premiums for both inflation, and age. This semi-annual increase has been a real burden for older Americans as most have seen their healthcare costs increase 50-100%. Furthermore, this comes at a time where many have seen their monthly incomes dwindle.
The Obama administration has proposed a 15% surcharge on Medicare Supplement Plans, which is effectively a 15% increase in monthly premiums. This would be in addition to the already extraordinary normal monthly increases already endured by Medicare recipients. The alternative to paying this 15% surcharge would be staying with original Medicare and absorbing the 20% coinsurance, or purchasing a Medicare Advantage Plan.
Medicare Advantage plans have been a viable alternative for some people, but not all. Many people find their doctors or hospitals do not accept any Medicare advantage plans, which makes them a horrible option. In addition, some people who live in rural areas do not have the option to purchase an advantage plan as there are no offerings in their area. To make matters worse, most people in rural areas have very low incomes, which mean they must make extremely difficult budgeting decisions when determining which Medicare Supplement Plan is best. A 15% surcharge could mean they don’t buy groceries this week.
Fortunately, this 15% surcharge is the small part of a budget proposal that would be up for vote in 2013, and won’t take effect until 2017. The chances of this bill passing are slim to none as the government has had quite a difficult time making important decisions lately. Medicare Supplemental Insurance will continue to be the choice more most people turning 65 as long as the monthly premiums are affordable and physicians and hospitals accept original Medicare.
