Thousands of Medicare Advantage plans to be discontinued in Iowa
By: Health Insurance
Submitted: 2009-11-05 19:28:36 | Word Count: 466
Nearly 1,000 people in Scott County are being told their Medicare Advantage plans are not renewing, leaving them with a choice of finding another provider or going back to traditional Medicare.
This is the first year that a significant number of the plans are not renewing, said Kris Gross, director of the state's Senior Health Insurance Information Program.
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The program, a unit of the state insurance division, is sponsoring two meetings today and another on Friday to talk to senior citizens about their options.
The vast majority of people on Medicare aren't affected by the changes, which pertain to people enrolled in the privately run Medicare Advantage plans.
The plans, which are reimbursed at a greater rate than traditional Medicare, often offer more generous benefits.
About 67,000 Iowans are enrolled in the plans, according to government figures. And about 12 percent, about 7,700 Iowans, are being notified their plans are coming to an end at the end of the year.
In addition to the nearly 1,000 Scott County residents affected, there are another 375 people in Clinton, Muscatine and Cedar counties who are being notified.
"We really haven't had any significant Medicare Advantage plans not renew for a while," Gross said Wednesday.
Earlier this month, the Center for Medicare and Medicaid Services said about 7 percent of Medicare Advantage enrollees would have to make changes because of plans discontinuing.
The agency said most are private fee-for-service plans in which their sponsors made "business decisions" to discontinue them. Those decisions, the government said, have been announced previously.
Also, the government has worked with insurers to reduce the number of "low enrollment and duplicative" plans.
Gross said about half of the 90 plans offered in Iowa are discontinuing, leaving the rest to continue operating.
Many of the plans operate in only one or a handful of counties.
Medicare Advantage plans have seen considerable growth since the 2003 Medicare Modernization Act.
Prior to that, there were few of the plans being offered in the state. The change in the law, which also added a prescription drug benefit, boosted that number.
People getting notices will see their plans end Dec. 31, and they have until Jan. 31, 2010, to pick another provider or go back to traditional Medicare.
People who have been notified of the changes should have been given a list of Medicare Advantage plans that will be available in their areas next year.
