Does anyone who recently received a letter from Blue Cross about rate increases understand what it's saying?
I'm not the brightest bulb on the tree, but I thought I did have a fairly good understanding of the English language. However, I received a letter from Blue Cross Blue Shield of NC today that appears to be telling me I can no longer have the medicare supplement I've been paying for but instead have to take another option. I only got this supplement in December of 2010. I chose the "entry age" plan because I just turned 65 on December 30 and the rate was not supposed to go up in the future just because I got another year older. It would possibly (read probably) go up because of increases in other areas but not increases in my age. Today my husband and I both received letters telling us that effective June 1, 2011 all plans are offered on an Attained Age basis. This means the rates will go up based on our ages. Then they suggest several other plans. Is anyone else as confused as I am about this? And PLEASE, if you don't know what you're talking about don't post an idiotic "answer" to my question. I see a LOT of non-answers here just because people want to get points. Don't waste my time.3 years ago - 3 answers
I don't answer for points so I won't waste your time.
In the grand scheme of things the insurance company will make enough on both types of plans (and on the community rated as well) to cover expenses and have a small profit remaining. Which plan is best will depend upon the company and future medical costs. I'm not licensed in NC but in my state the premiums for the "entry age" (usually called issue age) has been increasing 25 to 30% each year so I've been placing most of those clients onto different types of plans. The increases for the attained age and the community rated plans have taken much smaller increases. BCBSNC probably decided it's better to change now than to have drastic increases in the near future and risk loosing more clients.
Since I'm not licensed in NC I don't know what other plans they suggested. You need to speak with your agent to find out what your best options will be in the future. The agent knows what is happening in your area and if you have an agent that also works with other companies they'll have much more information.
Source(s):3 years ago
"Entry age" meant that it would not go up based on your age for as long as Blue Cross continued to offer that supplement on an "entry age" basis. It did not mean that you could keep it for the rest of your life, or even that Blue Cross would stay in business that long. It meant only that if Blue Cross let you keep it, then you would be able to keep it without increases based on age for as long as Blue Cross let you keep it.
Blue Cross stopped letting you keep it. This ended your ability to keep the same rate.
You have three options:
1. Get something else from Blue Cross (which will not be "entry age").
2. Get something from a different company (which may or may not be "entry age").
3. Get nothing.
You need to talk to an agent licensed in your state, however, there is a lot of recent federal legislation that has affected the funding of Medicare Supplemental plans. These are not old changes with the Health Reform Act (not all of them) - these are new changes.
The most recent change announcement was on April 11th of this year.