CVS Health's recent announcement that its 2024 Medicare Advantage plan enrollment grew more than expected is not too surprising given the perks these types of plans can offer, but people should use caution when considering these plans, a Medicare consultant told Kiplinger recently.
CVS Health's news is also in line with data from the trade group America's Health Insurance Plans, which shows that more than 32 million seniors and people with disabilities are enrolled in Medicare Advantage plans. The number is expected to grow by more than 34 million by year-end.
“The appeal of these plans is quite clear — they often come with attractive perks like $0 premiums, complimentary gym memberships and coverage for dental, vision, hearing and other services, which can be very enticing, especially when the economy is shaky and political uncertainty is on the rise,” Emily Gang, owner of The Medicare Coach consultancy.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There has also a lot of marketing and advertising around these plans, especially during Medicare's open enrollment period. A survey by The Commonwealth Fund published last September noted the ubiquitous advertising and marketing from private plans. Some survey respondents reported "experiences with Medicare marketing that would violate federal rules, including marketers asking for Social Security or Medicare numbers outside the enrollment process and advertising special, time-limited discounts, which are not permitted," according to Commonwealth Fund.
The performance of these plans has also been under the microscope at the Centers for Medicare and Medicaid Services’ (CMS), which rates Medicare Advantage and Part D prescription drug plans annually under a five-star system that measures the quality of the health and drug services that enrollees receive. In October, CMS data showed a dip in 2024 Medicare Advantage plan ratings, as Kiplinger previously reported.
The bottom line, according to Gang, is that beneficiaries need to dig deeper to understand the details of each plan. This includes such matters as cost, coverage and restrictions on switching to a plan under Medigap, which is supplemental insurance to Medicare, she added.
“While the short-term benefits may seem promising, the long-term implications could be quite different, and that's an aspect that shouldn't be overlooked when making such an important decision,” Gang said.
Medicare's 2024 handbook
To help you better understand the ins and outs of both Medicare and Medicaid, Medicare published its latest "Medicare and You" handbook last year for the 2024 plan year. It includes key updates such as:
- Savings on prescription drugs: If you have Medicare drug coverage (Part D) and your drug costs are high enough to reach the catastrophic coverage phase, you don’t have to pay a copayment or coinsurance.
- Lower cost for insulin and vaccines: Your Medicare drug plan cannot charge you more than $35 for a one-month supply of each insulin product that Part D covers.
- Changes to telehealth coverage: You can get telehealth services at any location in the U.S., including your home, until the end of 2024.
- Managing and treating chronic pain: Medicare now covers monthly services to treat chronic pain if you’ve been living with it for more than three months.
- COVID-19 care: Medicare will continue to cover the COVID-19 vaccine as well as several tests and treatments.
Related Content
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
New List Out On Medicare Part B Drugs Eligible for RebatesSome Medicare beneficiaries may pay lower coinsurance rates from April 1 to June 30 for the drugs, HHS says.
-
Lawmakers: Nix Social Security Offsets For Seniors In Student Loan DefaultOffsetting Social Security benefits to pay for defaulted student loans can be devastating for some beneficiaries, lawmakers say.
-
HHS Funding Secured As Major Government Shutdown AvoidedWith passage of the fiscal 2024 appropriations package, Medicare and Social Security are among the key agencies to receive funding through September 30.
-
Social Security Chief Testifies in Senate About Plans to Stop ‘Clawback Cruelty’Social Security plans to default to withholding 10% (not all) of the recipient's monthly benefits to recoup debt, SSA head says.
-
Medicare Advantage Open Enrollment Ends March 31Medicare Advantage enrollees have until March 31 to change plans. Here's what to know.
-
Social Security Chief Vows to Fix ‘Cruel-Hearted’ Overpayment ClawbacksCapping Social Security clawbacks at 10% for some beneficiaries is among the changes that O'Malley plans to propose.
-
Biden's Budget Rejects Any Cuts To Social Security and MedicareThe president's $7.3 trillion budget seeks to expand programs including some drug provisions under the Inflation Reduction Act.
-
Nearly Half of Americans Failed This Social Security Quiz About RetirementHow many of these questions on retirement benefits do you know?
