Here is the story as covered by the National Underwriter. Interestingly, the study finds that premiums would have increased by 22% if Medicare Beneficiaries simply stayed in their existing plans.
If you look a little deeper at the actual release from Avalere (you can find it here), you’ll find that HMO, LPPO, RPPO and SNP plans increased less than the average (11.3%, 3.7%, 5.1% and 12.2%, respectively) and PFFS plans’ premiums increased a whopping 31.2%.
Overall, premiums increased from an average of $34.69 to $39.61 in 2010. What the report does not reflect is the changes in benefits. Agents can probably vouch for this, but the majority of the changes in 2010 MAPD plans was not the premium increases as much as the reduction in benefits. Higher PCP and Specialist copays, higher inpatient hospitalization copays and leaner “value added” benefits.
Also today, CMS released it’s 45 day advance notice on their 2011 reimbursement numbers. What I think will be vastly different in 2011 is that the MAPD plans don’t have as much wiggle room with benefits in 2011 as they did in 2010. Therefore, I would expect a larger impact on premiums in 2011 assuming the final reimbursement numbers stay about the same.
Does anyone know if CMS is up to date on notifying carriers to pay the 2nd 1/2 of initial commissions for new Jan 1 beneficiaries? I received the 2nd 1/2 payment on a few, but have a lot still outstanding and am wondering when carrier will receive the notice to pay. Is there a way to inquire of CMS about particular beneficiaries? Thanks for any help you can provide.
Holly,
I received 2nd half or true up commissions from United Health Care and Bravo up to February 1, 2010 effective dates. On the other hand, I have still not received lst half commissions on 1/1/10 effective dates for Highmark Blue Cross Blue Shield or Unison.
Some companies care more about their contracted agents than others.