Medicare beneficiaries are very satisfied with their plans and expect no changes to their coverage, according to a recent survey.
The survey, compiled by Suffolk University and Silverlink Communications, sets the stage for a volatile enrollment period this fall when payers unveil their Medicare Advantage benefit plans for 2010, said Donna Burtanger, senior director of Medicare Solutions for Silverlink Communications.
The Centers for Medicare and Medicaid Services have mandated a payment rate reduction of 4 percent to 5 percent, depending on payer contract.
Payers need to educate their beneficiaries of the changes and options available in the health plan through targeted, unique messaging via multiple modes of communication, Burtanger said.
The situation provides a “strategic value proposition,” she said, for health plans to “rightsize,” redirect members to other options that provide the right coverage for them.
Blue Cross Blue Shield of Tennessee’s outreach initiative involves letters, phone calls and meetings to educate members on the 2010 changes.
“Although it will be challenging, we are dedicated to providing our senior market with stable pricing while offering good benefits next year in spite of the rate reduction,” said Barbara Saeger, product manager in BCBST’s government business and emerging markets unit.
WellPoint has been preparing for the reimbursement cut, anticipating revenue reduction and the need to cover expected increases in underlying medical costs, said Janice Kyser, public relations director for WellPoint’s senior business unit.
“Medicare Advantage payments are used to provide benefits such as coordinated care to seniors and individuals with disabilities that is not available in traditional Medicare,” she said. “As a result, any such reduction in payments would mean reduced benefits for members or increased member premiums or cost-sharing.”
“Seniors are going to be shocked,” said Robert Zirkelbach, senior manager for America’s Health Insurance Plans (AHIP). The changes will result in higher premiums, a reduction in benefits and loss of access through Medicare Advantage plans, he said.