Medicare Cost Plan Changes

If you're one of the nearly 400,000 Minnesotans participating in a Medicare Cost plan, you’ll need to find a new health care solution by Jan. 1. This change is driven by federal legislation that prevents health insurance companies from offering a Medicare Cost plan in most Minnesota counties, including Hennepin County. The good news is there is still time to explore your plan options and enroll before the Medicare Cost plans are sunsetted. We’ll provide you with valuable information about the Medicare Cost plan transition and what that means for you.

Plenty of Options

Although the Medicare Cost plan is going away, you can rest assured that there are many options to consider, such as Medicare Advantage, Medicare Supplement (Medigap) and Medicare Part D prescription drug plans.

It’s important to understand the difference between Medicare Advantage and Medicare Supplement plans. Both work with Original Medicare but do so in different ways. For starters, they have different enrollment and eligibility requirements, features, benefits, networks and costs. Many Medicare Advantage plans include prescription drug coverage, but Medicare Supplement (Medigap) plans do not, although you can buy prescription drug coverage separately if your plan doesn’t include it.

When you enroll in a Medicare Advantage plan, you get all your Part A and Part B benefits through your plan—not through Original Medicare. Plan benefits and premiums vary and can change from year to year. Many Medicare Advantage plans include prescription drug coverage along with vision, hearing and often dental benefits. This makes a Medicare Advantage plan a very convenient option because you get your health care benefits under one plan. Medicare Advantage plans generally require plan members to get care within their plan network.

With Medicare Supplement plans, your plan is renewed every year as long as you pay your monthly premiums. Benefits are generally the same year to year, though premiums may increase. Plan benefits will only change if federal or state law requires it.

Medicare Supplement plans give you the freedom to travel or live anywhere in the United States and to get care from any doctor who accepts Medicare. The benefits and premium will vary by plan, and you must continue to pay your Part B premium. It’s important to know that Medicare Supplement plans do not include prescription drug coverage. If you enroll in this type of plan, you’ll need to buy a stand-alone Part D plan if you want help paying for prescriptions.

Which Plan is Right for Me?

The best plan for you depends on your health needs, lifestyle and budget. You will want to consider whether you receive all or most of your care within the same health system, how much you are willing to pay out of pocket for health care, how much you can afford in monthly premiums, and how often you travel and for how long.

Guy Milbert is a Medicare-certified licensed agent at AAA Minneapolis and can help you enroll in a plan that’s right for you. AAA will host Medicare 101 educational seminars at AAA Minneapolis in November and December. To reserve your space, contact Guy Milbert at (952) 927-2752 or gmilbert@aaaminneapolis.com.