California Health Advocates published an article stating that President Obama’s budget includes a projected savings of $2.5 billion by imposing a surcharge on Medicare beneficiaries who buy Medicare supplement insurance also called Medigap. The Article says the average person would see their Medicare supplement annual premium rise by around $400.
California Health Advocates (CHA) state that they support containing Medicare cost and that this would “make beneficiaries pay more for their care as a way to reduce Medicare costs, but would do nothing to address the skyrocketing costs of health care services”. California Health Advocates go on to say that they will oppose Medicare changes that result in higher out-of-pocket cost for an already vulnerable population and that half of all Medicare beneficiaries have annual incomes of $22,000 or less.
It is clear that as the Baby Boomer generation hits the turning 65 age group that Medicare will be challenged to provide the same level of services that seniors have had in the past. Prevalent in the discussion is allowing the government to means test treatments, raising copayments and raising deductibles. Though cost sharing will most likely be a part of the solution it be would responsible for our Government to also work diligently on cleaning up the fraud, waste, and abuse the is prevalent in Medicare. It is good to see that there are non-profit organizations like California Health Advocate that work to keep an eye on our Government and to keep us informed.
Turning 65 and live in California? When you turn 65 you have a six month open enrollment period during which the insurance companies cannot refuse to sell you California Medicare supplemental insurance. This is the best time to protect yourself. After your open enrollment period has past you will have to go through medical underwriting and can be turned down for insurance.
Click to read the full article President’s 2013 Budget Proposes Shifting More Medicare Costs to Beneficiaries
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