Use The New Medicare Supplement Insurance Plans To Protect Your Health

Seniors who lived through the Great Depression have an insight that the rest of us are just beginning to realize. You can usually find a silver lining, and make change work to improve your life.

Here's a secret - economic prosperity is not of primary importance in protecting your health. Even the Great Depression, along with past recessions, had a silver lining. Unexpectedly, the evidence is clear that mortality rates actually fell during economic recessions.

Even during the Great Depression, life expectancy in the U.S. actually increased by 6.2 years, according to a University of Michigan study published in the Proceedings of the National Academy of Sciences. Life expectancy rose from 57.1 in 1929 to 63.3 years in 1932.

This increase in lifespan occurred for both men and women, and for whites and non-whites. The association between improving health and economic slowdowns was true for all ages, and for every major cause of death except suicide.

The researchers analyzed age-specific mortality rates, and the causes of death that composed about two-thirds of total mortality in the 1930s. That included cancer, cardiovascular disease, influenza, motor vehicle traffic injuries, pneumonia, renal disease, suicide, and tuberculosis.

Mortality rates actually increased, and life expectancy fell during periods of strong economic growth, such as in 1923, 1926, 1929, and 1936-1937. Why? Economic growth increases atmospheric pollution, and that leads to cardiovascular and respiratory mortality. Excessive alcohol consumption, overeating, and smoking all tend to decline during recessions. This brings dramatic improvements in our health, as well.

The real question is why we're blinded by the negative effects of recessions, and fail to recognize the equally real health advantages they spread throughout society.

In the present recession, we're about to see real changes in health care, too. It's important to seize the advantages, and use them to improve your health.

Medicare Supplement Plans Have New Opportunities

Medicare Supplement Plans (also called Medigap Plans) have been primarily the same for the past 17 years. On June 1, 2010, two new plans are being introduced, and there will be other changes to the remaining plans.

The new Medicare Supplement Plans M and N will offer a lower-premium alternative to the existing Medicare Supplement plans. These new plans are expected to be very popular, particularly with the upcoming major changes to the Medicare Advantage program.

Lower Premiums for Medigap Plans

Plan M uses a cost-sharing feature known as co-insurance to keep your monthly premiums lower. That means you are paying part of your bills, in exchange for a lower premium. In exchange for slightly lower monthly premiums, those on Plan M would split the Medicare Part A deductible ($1068 in 2009) with the insurance company 50/50. The insurance company pays half, and you pay the other half.

Plan M does not cover the Medicare Part B deductible, but there are no doctors' office co-pays after you meet the Part B deductible. Most analysts project that this plan's premiums will be about 15 percent lower than that of the current Plan F, which is now the most popular plan.

Plan N also uses cost-sharing to reduce your monthly premiums. Unlike the deductible-sharing method of Plan M, Plan N uses co-pays to help reduce the premium costs. The system of co-pays is set at $20 for doctors' visits, and $50 for emergency room visits. It is currently projected that this co-pay system will take effect after the Medicare Part B deductible is met. This plan should provide 30-percent-lower premiums than the popular Medigap Plan F premiums.

These new Medicare Supplement Plans can be really helpful to people who are leaving the Medicare Advantage program because the Medicare Advantage premiums are expected to increase in the near future. If you're unhappy with the changes in Medicare Advantage Plans, take a look at the new Medicare Supplement Plans. You may find unexpected opportunities to make your life better even where you least expect them.

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Healthcare Bill And It's Impact On Medicare

The Senate Health Bill has been grabbing headlines for months as members of the Senate continue to debate spending, bill allotments, and the merits of improved or universal healthcare coverage. The latest iteration of this bill in late November and included a price tag of $849 billion, according to the Congressional Budget Office. $200 billion alone would be set aside to help cover doctors' fees so that they would not suffer from a drastic cut back to reimbursement rates.

Much in keeping with the diversity of American opinion, this bill has come with more than its fair share of controversy, sparking heated debates on both sides of the political aisle.

Bill controversy

Democrats and Republicans are sharply divided over the merits and allocations included in this healthcare bill. The final vote on the bill showcased this division; the voting results were nearly entirely along party lines. In the 243 to 183 win by the Democratic-controlled House, only 11 Democrats voted against the bill and only one Republican voted for the bill. That Republican is also an obstetrician - Rep. Michael Burgess of Texas.
Republicans called the $200 billion allocation to cover doctors' fees a political payoff and labeled it as the Democrats' way of thanking physicians for their support of President Obama's healthcare overhaul.

What's included in the bill and how will it affect Americans?

The new healthcare bill, which will go into effect in 2010, is said to provide coverage to 94 percent of Americans. The bill is also estimated to cut the federal deficit by $127 billion during its first ten years. In its second decade, the bill is estimated to cut the federal deficit by as much as $650 billion. Over a 20-year period, it is believed that the bill would cut the federal deficit by $777.

However, in order to cut this deficit, the bill will reduce payments for Medicare plans and cut spending in a wide variety of other areas. The Congressional Budget Office estimates that seniors on Medicare will have to pay $49 billion in higher healthcare premiums over the next 10 years, passing along much of the healthcare expenses to Medicare beneficiaries.

Additionally, because of reduced payments and services covered by the bill, the Congressional Budget Office estimates that Americans will see a $195 billion price increase in doctors' fees for those doctors who treat Medicare patients. With only a percentage of those fees being covered by Medicare, patients themselves will have to make up the difference out of their pockets. TRICARE (the military healthcare program) beneficiaries would see an increase in fees by about $64 billion for non-military physicians who see patients enrolled in the TRICARE program.

How can Americans protect themselves from these price increases?

While it may be impossible to predict exactly how this bill will impact Americans and their pocketbooks until the bill is fully approved and implemented, Americans would be wise to begin looking for alternative healthcare solutions. Many Americans on Medicare may want to investigate alternatives to Original Medicare plans, including Medicare Advantage Plans.

Also, as healthcare prices increase, so will the prices of prescription medications and other medical services. Therefore, many Medicare beneficiaries would benefit by enrolling in Medicare Supplement insurance plans to help cover the cost of price increases and of items that are not covered by Original Medicare plans.

Managing the national healthcare system has proved to be a challenge and a politically derisive topic - especially over the past year. While changes are inevitable and are sure to impact every American, Americans can help to protect their health and their pocketbooks by focusing on maintaining or improving their health in controllable ways. Enrolling in affordable healthcare programs, such as a Medicare Advantage or Medicare Supplemental insurance program, may also help to save Americans a significant amount of money at the doctor's office.

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