10/21/2009
Medicare Advantage changes: Why Regence is still the best choice
With the recent changes to Medicare Advantage, you're undoubtedly receiving questions from clients who are concerned about their coverage and their premium. We know that many people will be considering all their Medicare coverage options this annual enrollment season. And it's understandable.
We're committed to providing our members with the information they need to make informed choices about their care and their coverage. As your clients come to you for help in evaluating their new coverage costs and choices, please share the following information with them.
What has happened?
Since Medicare Advantage and Medicare Advantage prescription drug plans were launched, the federal government has reimbursed carriers to help keep members' out-of-pocket costs down. But that reimbursement has been reduced for 2010. At the same time, health care costs continue to rise. Keeping our members' benefits and networks as stable as possible means we've had to increase our premiums to continue covering the costs of care.
Why is the Core plan going away?
The Centers for Medicare & Medicaid Services (CMS) asked us to simplify our Medicare Advantage portfolio. After carefully evaluating our products, we made the difficult decision to eliminate the Regence MedAdvantage + Rx Core (PPO) plan as of Jan. 1, 2010. We're sorry it's being eliminated, because it offered members a good value. But we'll move those members over to the Regence MedAdvantage Classic (PPO) plan, which has comparable benefits.
Also, we're offering our Regence MedAdvantage (PPO) members a one-time opportunity to switch to a Medigap plan without underwriting if that coverage better meets their needs.
Last week Core plan members received notification letters.
What plans do we offer now?
Our portfolio still offers three plans, two of which include a prescription drug plan: Regence MedAdvantage (PPO), Regence MedAdvantage + Classic Rx (PPO) and Regence MedAdvantage + Enhanced Rx (PPO). All three plans the same coverage as the Core plan, along with additional benefits such as dental and vision.
Why is Regence still a good choice for Medicare Advantage coverage? We care about our members, so it's important to us to give them excellent service, a stable network and valuable benefits.
We've been serving this community for more than 90 years. And we plan to stick around for a long time to come. We want our members to be able to rely on us. And we know that our members and our business partners are busy—so we work hard to make it easy to have Regence coverage. We're proud of our reputation for having unbeatable customer service, both on the phones and in paying claims quickly and correctly.
That same dedication is why we maintain a reasonable level of reimbursement to providers—and why we strive to build a large network for our members to choose from. This means they won't be turned away when they need care, and the chances of having their care interrupted by network disruptions is low.
Finally, our focus is on our members' wellness—so providing benefits and services that help keep members healthy and maintain a strong provider network with guaranteed access to care is vital. We know that pharmacy, dental and vision benefits are especially important to our Medicare Advantage members. So we made a point to keep those benefits in our products for next year. We didn't want the reduction of federal reimbursement to result in a reduction of benefits. And we felt it was important to keep that coverage without an increase in cost-sharing. The result, unfortunately, was an increase in premium.
In addition to benefits, we provide our members with valuable wellness resources designed to help them achieve the best possible health and be more informed health care consumers. The CareEnhance® Nurse Line and Regence Advantages discounts are just two examples of the value-added services we offer.
What about the other options that are out there?
It's important to remember that other plans may not offer the same level of benefits that Regence MedAdvantage (PPO) plans do. Some coverage might cost less up front, but the overall costs of care, plus potentially limited provider selection and service sacrifices, may not be worth it to every member. Going to Original Medicare is another option, but it carries significant potential for up-front costs without protection from high out-of-pocket expenses. Also, it doesn't cover dental or routine vision care.
We recognize that this is a personal decision that each member needs to make based on health and financial realities. But we do want to encourage members to be fully informed about all the pros and cons of switching coverage. No matter what their decision, we're here to support you as you help your clients make the choice that's right for them. Whether they want to investigate other Regence options or choose to switch carriers, we understand that this is a difficult time for them and want to offer all the support and information we can to both you and your clients.
The bottom line
The Medicare environment is evolving rapidly—with a growing population and increasing costs. Not to mention the vigorous national discussion about health care coverage that will most likely result in changes for many people. While we don't have all the answers, we do intend to keep up with these changes and want to reassure our members that we are keeping our focus on providing them with the best possible coverage in this new era.
Annual Notifications mail 10/28
The annual notification to current MedAdvantage members mails will be mailed to our members Oct. 28th. As follows are copies of the current letters:
The letters detail the plan and premium changes that go into effect 1/1/10.
On November 2nd we will mail a 2nd letter to our members explaining their plan changes again. In this letter we will provide them with a list of member meetings and invite them to attend. Please call your Regence Sales contact if you have any questions or Individual Marketing at 1-888-REGENCE.
Thank you for your continued partnership with Regence.
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