Disappearing Posts? Go Figure!

[RussellP197074]

I came back to update my previous posts about my efforts to change carriers from my Medigap Plan F from AARP/UHC to another company, but the posts are nowhere to be found.

First question is, is AARP too afraid to let criticism appear?  

To recap, for those who never saw it, I was replying to other posts (in my case) about using Maryland's new Birthday Rule to change carriers and/or plan levels. My DOB is Aug 10th, and my wife's is Aug 28th, which fell into the 30 period after mine, so we waited until then to attempt the switch.  That turned out to be a mistake. More on that toward the end.

I made an appointment to talk to the S.H.I.P. people in my county to discuss the Birthday Rule.  They had never had an issue with anyone using it, even if their AARP/UHC Medigap plan had started before 7/1/2023, which someone at AARP had said made me ineligible.  Eventually I did get a correction and an apology from someone higher up at AARP.

After settling on a new carrier, we called them and got it set up.  There were some delays in getting it set up with the new carrier, which resulted in the approval (without requiring underwriting, by the way) by the new carrier not coming through until 9/5/2024.  I couldn't inform AARP/UHC that I was discontinuing their plan until that time.  Unfortunately, our premiums were always automatically withdrawn on the 5th of each month.  The person I talked to at "AARP", promised me that the payment would be stopped. I don't fault her for being wrong, since she, and the person I also talked to later to complain when it was taken out of our bank account were obviously not living here in the USA.  This is the AMERICAN Association of Retired Persons, isn't it?  The second person also made a promise that it would get straightened out in 5 days. She didn't say it was working days, but I'll wait until 7 days elapse before I call again, since there is a weekend in that 5 day period.  In the meantime the new carrier has taken their (much smaller) premium out of our bank account as well.  

If I had made the change for myself first around the 10th of August, the amount in limbo would have been less than half of what it is.  That was the mistake I was referring to earlier.

[GailL1]

@RussellP197074 

One other thing you may need to follow since you are changing insurers is what’s showing on your Medicare site.  ESPECIALLY true if you have active claims being made during this period of transition.

As you know, Traditional Medicare processes your claims and then automatically sends it on to the Medigap insurer they have on your file.  If you have current claims being processed, just make sure that your Medicare file has the correct Medigap insurer listed because the transition takes time to work it’s way thru the Medicare claims system.

[GailL1]

The FAQ page on Medigap from the State of MD suggest that there may be some special consideration or rules for those who are switching from a Medigap plan no longer offered (Like Plan F) to a current one of equal or lesser value (like Plan G)  - It doesn’t say what these are -   Do you know?

See the second question labeled  “Q” (last one) on page 13 of 13 at this link -

https://insurance.maryland.gov/Consumer/Documents/publicnew/Medicare-Supplement-FAQs.pdf 

Q.  If you have a question about using your Birthday rule rights to switch from a closed Medicare Supplement Plan to a plan that is currently sold, please reach out to . . . . . . . . . (and it give the contact with an email address).

[RussellP197074]

The only special consideration that I am aware of is for Plan F you have to have started Medicare Part A, or maybe Part B as well, before 1/1/20 in order to be able to get it.  Otherwise you are limited to Plan G or less.

[GailL1]

That’s for everybody - the Maryland Medigap FAQ site infers there is something special about it when it comes to the Maryland Birthday rule.

The government link site (see above) says:

Q.  If you have a question about using your Birthday rule rights to switch from a closed Medicare Supplement Plan to a plan that is currently sold, please reach out to . . . . . . . . . (and it give the contact with an email address).

[GailL1]

@RussellP197074 

To check for your “missing” post, look at your profile where all the post you have made shown up under your user name.

Your page is here:

https://community.aarp.org/t5/user/viewprofilepage/user-id/19120530 

[RussellP197074 · Accepted solution]

By the way, I like the plan that AARP/UHC offers, I just don't like the way they increased the premiums.  17.8% increase over a year, with all the increases in the three months after they switched from one deduction from our bank for the both of us to two separate deductions, one for each of us. If I remember correctly, the premiums are supposed to be community based, which, to my understanding, means the premiums are based on the overall costs of the entire group in the plan.  I now believe that, if you have medical costs at all, your premium increases will be based on how much your bills have been.

[RussellP197074]

I also didn't like that they categorized premium increase as lowered discounts as opposed to rate increases.  I shouldn't have had continuing introductory discounts 7 years into the plan.  So, if you are in an AARP/UHC Medigap plans watch for their "increases" and what they call them.

[GailL1]

@RussellP197074 

The AARP/UHC Medigap plan discount isn’t an introductory offer - it is a declining discount and can last up to (10) years depending on when you bought your Medigap policy.  

The % and the length of time it is applicable has changed through the years on each policy depending on when the policy was 1st purchased.

Details of the specific plan should have been disclosed to you in a letter most likely sent with the coverage details of the AARP UHC Medigap plan you selected back in 2017.

ALL Medigap plans increase -  they base their increases on (3) things:

1.  How their specific policy is price rated 

• community rated
• attained age rated
• issue age rated

2.  How much the cost of healthcare is affecting the plan - we are in a period of inflation so healthcare is not immune to this factor.Since all healthcare cost are local, the increase in premiums is always done by area - zip code usually.

3.  if applicable, any declining discount (common with AARP UHC Medigap) also increases the premium cost.

You might find this interesting - a blog for the brokers

CareValue Blog - 2023 rate infor for aarp medicare supplemental plans by state. 

Since this is old I can post it - anything current would be proprietary.

 I do not know how right or wrong this is.

[RussellP197074]

Interestingly, my premium for AARP/UHC had increased to $290/month for Plan F.  I looked at two other companies, that had Attained Age Rating, and selected an age of 85 (I am 74) and their premiums for Plan F maxed out at around $258/month. I got a rate of $200/month without having to go through underwriting for one of these plans.  The only recent care I have been receiving, beyond routine checkups is going to physical therapy for about three weeks to learn exercising to relieve pain in my lower back due to arthritis.  That's the only thing that I can account for rate increases, but shouldn't this type of insurance that is supposed to depend on community size or age not be dependent on how much billing they have received for one individual?

[GailL1]

Community Rating is a rule that prevents health insurers from varying premiums within a geographic area based on age, gender, health status or other factors.

It is a health insurance pricing system where health insurers CANNOT charge people within a geographic area higher premiums based on their age, gender, health status, or claims history.

The only Federally mandated upcharging exception to this for Medigap plan insurers would be smoking - a higher premium for smokers.

You have to compare like rating system -

 Geographical areas also change in their health care cost stability - like an areas that loses some health care infrastructure would have higher health care cost.

Each insurer figures their own premiums based on not only on ratings method but also other things that are more proprietary in nature - like the declining discount of AARP/UHC Medigap.  

Or some Medigap plans have other benefits attached and of course, these are also added in to the premium and the increases - like a gym membership.