BCBSM Medigap Legacy plans are an invaluable part of Medicare in Michigan.
Current legislation threatens its existence.
Medicare without additional insurance is not enough. Individuals with Medicare need additional Medicare coverage to help cover co-pays and deductibles. Blue Cross Blue Shield of Michigan's Legacy Plans are the best option for most Michiganders for this supplemental coverage. However, current legislation may eliminate or impair these plans.
BCBSM is a nonprofit. In exchange for decades of tax breaks given by Michiganders, BCBSM has insured that every Michigander has health insurance. With 70% of the Michigan health insurance market, 54% of the Medicare Advantage market, and guaranteed best pricing at many hospital systems, BCBSM has become the dominant insurer in Michigan even with this social commitment.
One key aspect of BCBSM's nonprofit commitment is its Medigap Legacy Plans. With the Michigan Attorney General's oversight, these plans have provided affordable Medigap insurance to Michiganders regardless of medical condition or age for decades. Current legislation will likely strip the Michigan Attorney General of this oversight and would no longer require BCBSM to provide these Medigap plans.
Conveniently, BCBSM made an agreement with the State of Michigan to hold BCBSM Medigap Legacy rates constant until 2016. Governor Snyder and others have used this agreement in an attempt to minimize the political impact that the proposed legislation will have on these Legacy plans. However, nothing in the legislation currently guarantees the Legacy plans beyond 2016 and it is uncertain to what extent BCBSM will allow new Legacy enrollees until 2016. Thus, in addition to taking an important Medicare option away from Michiganders, this legislation will likely cost Michiganders at least $1.7 Billion in today's dollars in the form of increase Medigap premiums.
Consider these scenarios:
The current BCBSM mutual conversion plan will cut Medicare options for all Michiganders. Please contact your legislator and ask that the BCBSM Medicare Medigap plans be protected.
BCBSM is a nonprofit. In exchange for decades of tax breaks given by Michiganders, BCBSM has insured that every Michigander has health insurance. With 70% of the Michigan health insurance market, 54% of the Medicare Advantage market, and guaranteed best pricing at many hospital systems, BCBSM has become the dominant insurer in Michigan even with this social commitment.
One key aspect of BCBSM's nonprofit commitment is its Medigap Legacy Plans. With the Michigan Attorney General's oversight, these plans have provided affordable Medigap insurance to Michiganders regardless of medical condition or age for decades. Current legislation will likely strip the Michigan Attorney General of this oversight and would no longer require BCBSM to provide these Medigap plans.
Conveniently, BCBSM made an agreement with the State of Michigan to hold BCBSM Medigap Legacy rates constant until 2016. Governor Snyder and others have used this agreement in an attempt to minimize the political impact that the proposed legislation will have on these Legacy plans. However, nothing in the legislation currently guarantees the Legacy plans beyond 2016 and it is uncertain to what extent BCBSM will allow new Legacy enrollees until 2016. Thus, in addition to taking an important Medicare option away from Michiganders, this legislation will likely cost Michiganders at least $1.7 Billion in today's dollars in the form of increase Medigap premiums.
Consider these scenarios:
- In 2016, what will an eighty year old who has been on a BCBSM Legacy plan for years suddenly have to pay for Medigap insurance? We currently know that BCBSM charges $194.53 (vs. $121.22) a month or $73.31 a month more for Legacy Plan C if he or she moves out of Michigan. Thus, we can assume that insurance for this individual will probably go up by at least $880/year and it will more likely be an increase of over $1,000/year in 2016.
- An older parent is talked into a Medicare Advantage plan by an insurance agent looking for higher commissions. After a year, he or she realizes that necessary medications, a particular doctor, or a vital medical service is not provided for or being denied by the Medicare Advantage plan. Historically, he or she could be saved from this bad situation by enrolling in Legacy Medigap. If this legislation passes, he or she may not even be able to get a Medigap plan (not to mention an affordable plan).
- An individual's former employer goes bankrupt or cuts a retirement health plan considerably. Historically, he or she could get affordable coverage under the Medigap Legacy plan. If this legislation passes, he or she may no longer be able to get Medigap insurance (and this is option is already being unilaterally cut by BCBSM).
- A 45-year-old individual gets into a serious car accident and qualifies for Social Security disability. While an older adult new to Medicare can get a Medigap plan despite an underlying medical condition, there is not the same guaranteed issue right for those under 65 without Legacy Medigap.
The current BCBSM mutual conversion plan will cut Medicare options for all Michiganders. Please contact your legislator and ask that the BCBSM Medicare Medigap plans be protected.