Sherpa Article - medicare sherpa

Mar

2010

MA Health Insurers Show Declining Revenues, Profits and Executive Compensation for 2009

Written by Dana Cutter

2009's Biggest Loser is Blue Cross with a Loss of $149 Million and Fallon Coming in Second with Losses Nearing $29 Million.

Tufts, Harvard and Health New England continued to show profitability over the past two years and also managed to increase membership as well. While a few plans continue to hide their revenue results this year - - they are still required to file their executive compensation plans with the Division of Insurance (DOI). A few plans had flat or declining salaries in the wake of their 2009 revenue annoucnements. A few managed to scale back bonuses while giving out modest salary increases. We were not able to obtain salaries for Blue Cross and Fallon. After 2008's salary increases at Blue Cross and their incredible amount of financial losses last year - - it will be interesting to see how their executives fare.

Medicare Sherpa has scanned each document and placed a copy in our discussion forum. You are welcome to download and view each exhibit.

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CMS Increases Medicare Advantage Funding by 1.38% for 2011

Written by Dana Cutter

Sunday, 07 March 2010 18:26

CMS Annouces Rate Increases for 2011 Private Medicare plans, a major source of business for many health insurers, may see a small increase of 1.38% in funding from the federal government for 2011. (rates released Friday, February 19th).

These estimates are preliminary, final rates will not be published until early April. Wall Street and the Analyst community all have mixed reactions, but last year's reduction in payment (4.8%) to private Medicare plans resulted in upwards of nearly 50% increase in premiums to Medicare Advantage plan members for 2010. The average health plan receives about $900 per member per month and these cuts resulted in a reduction in revenue of nearly $45 per member per month. Many insurers simply passed the loss onto their members through rate increases.

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Do You Know the Hidden Cost of Medicare Insurance - Premiums, Copays & Deductibles?

Written by Dana Cutter

Monday, 22 February 2010 00:00

Still Time to Switch Medicare Advantage Plans and Meet the March 31st Deadline!

Most health insurers bury the true cost of your healthcare in copays, deductibles and coinsurances. Often seniors don't realize they may have purchased too little or too much health insurance. March 31st is the last day you can "switch" health insurance. If you purchased your insurance based solely on the premium - then you've only looked at the tip of the iceberg. Your monthly premium only represents a small fraction of your annual cost "when you are sick." So it is really important to understand how Medicare Advantage plans hide the true cost of healthcare and how to calculate those costs when you are sick.

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Wall Street Journal Got It All Wrong: You Can Avoid Medicare Penalties!

Written by Dana Cutter

Wall Street Journal and Medicare I recently read an article by Anne Tergesen of the Wall Street Journal that demonstrated a clear misunderstanding of your rights when enrolling in Medicare if you decided to work past the age of 65: "Retirees Snared by Medicare, As People Work Longer they Risk Penalties for Missing Medicare Deadlines."

Technically she is correct, if you plan to postpone enrollment in Medicare Part B and Medicare Part D - you may face some stiff penalties if you are not aware of the rules. You may even face being uninsured. Since she decided to sensationalize a few examples where people where misled, I felt it was important to be absolutely clear, if you plan to work past the age of 65 and continue to receive health insurance from your employer - you will NOT be penalized by Medicare when you are ready to retire and enroll in Medicare.

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Senate Votes to Move Forward with Patient Protection and Affordable Care Act

Written by Dana Cutter

On November 21, 2009, the U.S. Senate voted 60-39 on a cloture motion and to formally consider and debate the Patient Protection and Affordable Care Act (H.R.3590). Senate moderates on Sunday threatened to scuttle the health care bill if their demands weren't met, frustrating rank-and-file Democrats who say their colleagues' views were out of step with American voters.

Differences with House Bill
Unlike the House bill, the Senate bill imposes a new payroll tax for individuals earning over $200,000 and taxes on insurance companies, drug companies and medical device manufacturers. Over the next decade, the bill would cost $848 billion, slightly less than the $1 trillion House measure. But much of those savings are realized because it would take effect in 2014, a year later than the House bill [source: AARP].