The number of Americans on Medicare Advantage plans vs traditional Medigap plans has surged to 54% according to a recent University of Southern California report, and this increase is rapidly rising.
The reasons given for this increase in popularity of Medicare Advantage plans are many with the primary reason being premium savings. While premium savings for a 65-year-old might only be a couple thousand dollars per year, for those under 65 on disability and those Medicare recipients in their mid 70s or older the savings are significantly higher.
In South Dakota, regional carriers like Medica, Sanford and Wellmark Blue Cross Blue Shield have reduced traditional Medicare Advantage out of network risks substantially. These regional plans have seen more growth recently than the National Carrier plans. We want to remind people, including healthcare professionals, that not all Medicare Advantage plans are alike. Most include very competitive prescription drug coverage and generous additional benefits such as dental, vision, hearing, and gym memberships. The Medicare Advantage focus is on wellness and preventive healthcare. They provide a very proactive approach to keeping us seniors upright and living longer healthier lives.
The Trump administration recently announced an annual funding increase in excess of 5% for Medicare Advantage plans compared to the previous projected funding increase of just over 2%. With Traditional Medigap annual premium increases averaging over 20%, the number of Medigap plan participants will continue to decrease while Medicare Advantage plans will grow.
As an agent with over 41 years of experience in the health insurance arena, including 40 years of selling Medicare Supplements, often referred to as Medigap plans, I have turned to a Regional Medicare Advantage plan as my choice to take care of me. Today, as our office works with Medicare recipients, their choice more and more has also been a Medicare Advantage plan.
Medicare Advantage plans have not only taken over as the plan of choice, in my opinion, it wont be long before they will be the predominant Medicare plan.
To your good health!
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