Medicare Advantage Plans - Buyers Beware!

On Monday, the New York Times ran a great story about Medicare  Plans. Medicare Advantage Plans are a type of health plan sold by private insurance companies. The plans are associated with Medicare.

It seems that seniors across the country have been duped into signing away their Medicare benefits by enrolling in a Medicare  Plan. In some cases, the seniors didn't understand how the Medicare  Plans worked, and in others, they didn't even know that the insurance agents had signed them up for the plan. The insurance companies that sell these plans have been accused of several bad practices, including:

* Deceptive marketing strategies that don't make a clear distinction between Medicare and Medicare Advantage

* Targeting of uninformed seniors in low-income areas by pushy agents with hard-sell techniques

* Outsourcing customer service to overseas call centers, whose employees have substandard knowledge of the complex Medicare system

Insurance agencies with Medicare  Plans undergo a greater amount of scrutiny than they have in the past-and it seems to be helping at least a little. Kerry N. Weems, the acting administrator of the Centers for Medicare and Medicaid Services, says, "There are substantially fewer violations, and those violations are of substantially lower severity than in previous marketing periods."

Medicare  programs can help some consumers to finance their care, but these plans are not for everyone. There are factors to consider before signing up for any type of Medicare Advantage Plan. Here, a few of the most essential issues:

1. Make sure your doctor(s) and local hospital are within the insurance company's network of providers.

2. Medigap policies become null and void once you are enrolled in a Medicare Advantage Plan. If you already have a Medigap policy, cancel it once coverage begins with a Medicare Advantage Plan to avoid paying twice.

3. Medicare Advantage plans vary greatly. You are giving up all rights to your existing Medicare policy-so pick a plan that will meet your future care needs as well as your current ones.

4. Read the fine print. This is an important decision-don't rush it!

We live in a society where the buyer must beware. Call your parents tonight! Make sure they know about the issues surrounding Medicare Advantage Plans. That phone call could be the one thing that saves them from making-or worse yet, being pushed into-a decision that isn't right for them. You don't even want to think about the alternative!

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