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Insurance Company One Two Punch in Maine

Wed, 12/13/2000 - 1:00am — Karen Stevenson
Description: 

Medicare beneficiaries in Maine have been dealt a "one two" punch by insurance companies. First they lost their only Medicare HMO, and now they are facing 25% increases in premiums for the Medigap policies they'll need when they return to the regular Medicare program.

The last Medicare HMO available in Maine, Aetna U.S. Healthcare, will no longer participate in the Medicare program and has announced that participants in their plan will no longer have coverage effective January 1. Since there are no other Medicare HMOs left in the state, all Medicare beneficiaries in Maine will have to rely on the standard Medicare program for coverage. Those who want to protect themselves against the significant deductibles and co-insurance in the standard Medicare plan will probably want to find a private MediGap insurance policy (also called a Medicare Supplement policy). Now it appears the state's residents may be in for another shock, since insurance companies that provide these policies have requested steep increases in their Medigap premiums effective January 1. Anthem Blue Cross is requesting an average rate increase of 13.5% and Banker's Life is requesting increases ranging from 7.5% to 30% on their Medicare supplement plans effective January 1, 2001. The Maine Department of Insurance reports that the average increase requested for Maine policies is 25.6%. The Department of Insurance is reviewing these requests, and must approve them before they would become effective.

Medicare beneficiaries in Maine have been dealt a "one two" punch by insurance companies. First they lost their only Medicare HMO, and now they are facing 25% increases in premiums for the Medigap policies they'll need when they return to the regular Medicare program.

The last Medicare HMO available in Maine, Aetna U.S. Healthcare, will no longer participate in the Medicare program and has announced that participants in their plan will no longer have coverage effective January 1. Since there are no other Medicare HMOs left in the state, all Medicare beneficiaries in Maine will have to rely on the standard Medicare program for coverage. Those who want to protect themselves against the significant deductibles and co-insurance in the standard Medicare plan will probably want to find a private MediGap insurance policy (also called a Medicare Supplement policy). Now it appears the state's residents may be in for another shock, since insurance companies that provide these policies have requested steep increases in their Medigap premiums effective January 1. Anthem Blue Cross is requesting an average rate increase of 13.5% and Banker's Life is requesting increases ranging from 7.5% to 30% on their Medicare supplement plans effective January 1, 2001. The Maine Department of Insurance reports that the average increase requested for Maine policies is 25.6%. The Department of Insurance is reviewing these requests, and must approve them before they would become effective.