Blue Cross has begun sending letters to nearly 200,000 people in Michigan who are enrolled in a product called “Legacy Medigap.” It’s a type of voluntary, supplemental insurance for Medicare-eligible people.
It can help pay some of the health care costs that Original Medicare doesn’t cover, like copayments, coinsurance and deductibles.
Our Medigap members are among our best and most loyal customers. I know many people personally who refer to it fondly as “my Blue Cross.” They’re passionate about it, because between Original Medicare, the Medicare Part D drug plan they’ve selected and their Legacy Medigap supplemental plan from Blue Cross, they have coverage that gives them confidence. This confidence is something we’ve aspired to create for Michigan’s people over 77 years and we are committed to continue this far into the future.
The letters we’re sending preview big changes we need to make to Legacy Medigap. We acknowledge that these changes will be concerning – even scary – to some of our members and their family caregivers. To prevent this worry and minimize concern, we are making an extra effort to make sure our members have all the information they need to understand how and why things are changing with Legacy Medigap, and that we are here to work hand-in-hand with them through this transition.
How Are Things Changing?
- A rate freeze on Legacy Medigap is ending. Legacy Medigap is perhaps the only health insurance plan in the United States whose rates have been frozen over the last five years. This was due to an agreement between Blue Cross Blue Shield of Michigan and the State of Michigan. This agreement expires on July 31. Typically, insurance premiums reflect the cost of providing health care services to the people enrolled in insurance plans. In Legacy Medigap, premiums (frozen for five years) have not kept up with costs, which increase every year.
- A subsidy program that reduces Medigap premiums is transitioning. In addition to the freeze on rates, Blue Cross Legacy Medigap members have benefitted from subsidies provided directly by Blue Cross that reduce the premiums they pay from the rates Blue Cross would otherwise charge in the market. This means that the price our members see on their bills is artificially low. This subsidy program is transitioning from Blue Cross to the Michigan Health Endowment Fund – meaning that the premiums people see on their bills will be aligned to competitive market rates. Subsidies provided by the Health Endowment Fund will be in place to help some people with lower incomes (adjusted gross incomes) or disabilities.
Why Are Things Changing?
- The rules have changed. Blue Cross began subsidizing Medigap plans back in 1980, under an old state law that made the company exempt from paying state and local taxes. This law has been replaced. Today, Blue Cross now is required to pay taxes (we paid more than $100 million in state and local taxes in 2015) and the Medigap subsidy program was replaced as a result.
- Blue Cross now pays the Health Endowment Fund to subsidize Medigap. The same law that requires Blue Cross to pay taxes also established the Michigan Health Endowment Fund, a nonprofit whose mission is to help vulnerable populations in our state, including children and older adults. Blue Cross is the sole source of money for the Health Endowment Fund, and will pay $1.56 billion over 18 years to the Endowment Fund. We have already paid $210 million of that pledge. With some of this money, the Health Endowment Fund will put a subsidy program in place that is now available to people with lower incomes (adjusted gross incomes) and disabilities who purchase a Medigap plan.
Some Good News
- Legacy Medigap members can keep their plans. We are going to be introducing new Medigap plans to the market, but anyone currently enrolled in a Blue Cross Legacy Medigap plan can remain in that plan as long as they pay the new premiums.
- Blue Cross will continue offering a guarantee-issued Medigap plan. This means that people with pre-existing health conditions won’t be denied coverage.
- Premiums for Legacy Medigap won’t increase until January 1, 2017. We want to give our members time to examine all of their options for coverage, talk with their families and caregivers, and work with Blue Cross experts who can help get questions answered.
- Medicare-eligible people have a large number of coverage options. Legacy Medigap is not the only insurance plan for Medicare beneficiaries. But when you’ve had a great deal for a long time (like Legacy Medigap has been) you don’t look anywhere else. When we started the subsidy program back in 1980, there were no options for Medicare-eligible people. Today, there are many options – including plans that cover things like dental and vision that aren’t covered even with a Legacy Medigap plan. Blue Cross experts are available to help people explore all these options under today’s modern Medicare system.
- Subsidies will remain available to reduce the cost. Medicare beneficiaries enrolling in Medigap will be eligible for subsidies to reduce their premiums if they meet eligibility criteria. The Michigan Health Endowment Fund is managing the subsidy program and is expected to establish eligibility criteria this month. Check back here for updates on their decisions. Blue Cross also will be mailing information to all of our Legacy Medigap members to provide them with additional information about the subsidy once the program is determined.
- We are here to help. Blue Cross is committed to meeting the needs of each of our Legacy Medigap members as they make decisions regarding their health coverage. Each one of our members will receive two letters – with the second (arriving before July 15) having a special phone number for them to call for assistance. We will work hard to make this change as understandable as possible, and provide the information necessary to help our members make confident choices about their health coverage.
Looking for more information on Legacy Medigap? See the following related blogs:
Resources for Legacy Medigap Members
Blue Cross and Michigan Health Endowment Fund to Protect Vulnerable People
Why We’re Making Changes to Legacy Medigap
Photo credit: Gracie and Viv
I’m getting ready to retire and was hoping my husband and I would be able to afford Bcbs health insurance. Can you send me a simple affordable insurance plan so when I do retire we will be a little ahead of the game. Address is:
Patricia Cabaj
25147 Patricia Ave.
Warren,MI 48091
Thank you
Hi Patricia,
Thanks so much for reaching out and congratulations on nearing retirement. We are going to send you information on our current plans to the address you provided. Additionally, if you would like to learn more or talk to a health plan advisor, please take a look at our website here, http://www.bcbsm.com/content/microsites/medicare/en/index.html or give us a call at 855-339-9231.
Best,
Naomi
Awesome and very informative.
Will the 2017 Legacy Plan have the same coverage as the current Legacy Plan? Will the only difference be the premium?
Hi Shirley, Yes, 2017 Legacy Plan will have the same coverage. Coverage in our Medigap plans will not be affected by changes in premiums. You can keep your Legacy Medigap plan by paying the premiums when they are due. Your premiums will not change until January 1, 2017. This will give you time to get all of your questions answered. A second letter from Blue Cross coming in the mail before July 15 will provide a toll-free phone number for you to speak with one of our expert advisors. They are there to assist in answering your questions and helping you understand your complete array of coverage options. Please call them when you receive your next letter. Thank you, Naomi
Will the 2017 Legacy plan still be community rate base pricing?
Thanks for your question, Paul.
No, rates will be determined based on a number of factors, including your age and where you reside in Michigan. Unlike many of our competitors, Blue Cross will continue to guarantee access to Medigap coverage, regardless of health status. But, like our competitors, rate plans based on several factors that reflect the expected cost of providing care to our individual members.
Thank You,
Naomi
Why are there diffferences in the monthly billing amount? My wife and I always paid the same amount before.
Hi William,
The rate increase is based on several factors that may make you and your wife’s monthly rates different. To learn more, you can contact an Advisor by dialing the number on the letter you received or by following the instructions on this link: http://miblues.co/29OAEjf.
Thank you,
Naomi
I currently pay $122.86 monthly. What will the new premium be?
Hi Shirley,
You will receive a second letter from Blue Cross before July 15 with specific information about your future rate. At that time, we will provide you with a phone number that will connect you with helpful experts who can assist you in answering your questions. Please look for our next letter and contact us at the time you receive it. Also, we have decided that your rate will not change until January 1, 2017. This will give you time to carefully explore all your options.
Thank You,
Naomi
Is the Michigan Medigap subsidy program based on total household income or taxable income. The amount figured after deductions for doctor bills, property taxes (etc).
Hi Robert, Subsidy eligibility is based on household income and a number of other factors. To learn more about the Michigan Medigap Subsidy and your potential availability, please visit this page, http://bit.ly/29vKGdk, or call 1-866-824-9772 to get your questions answered by someone directly. Thank you, Naomi
Will the Plan F premium be affected like the Legacy Plan as to a much higher premium?
Hi D,
If you are enrolled in MyBlue Medigap Plan F, the changes we’re making to our Legacy Medigap plans do not affect you, your health care plan or the monthly premium you pay. However, you may be subject to an annual renewal rate for your MyBlue Medigap plan on your enrollment anniversary date.
Thank You,
Naomi
I have my Medigap policy since1999; I understand costs go up, but, !20% ?
Hi Gail, due to the five-year freeze on our Legacy Medigap rates, our rates have not kept up with rising health care costs over that time. We are confident that when compared against prices charged by our competitors, our Medigap plans will remain an excellent value. Feel free to reach out to one of our specialists at 1-888-899-8931 or visit http://miblues.co/2a6lp8k for more information on the subsidy that is available. Thank you, Naomi
I plan to stay with Legacy, can you tell me what the premium cost will be.
Hi David, We appreciate you continuing your Blue Cross coverage with us. Nothing but your rate will change and we want to help answer your questions about your rate. You should have received a letter around July 15 surrounding the changes. We apologize if you did not receive it. If you give us your contact information, we’ll have someone give you a call and help you out. Please provide us with a little additional info here, http://miblues.co/1Bb6oI4, and we’ll follow up. Let us know of any additional questions you may have in the meantime. Thank you, Naomi
my medigap plan c with bcbs proposed 2017 rate will increase by 228%/ from $122 per month to $280 per month. Im certain this has nothing to do with mr obama….yeh right ! I thought plans were supposed to go DOWN $2500 per year
Hi Ken,
Asking our members to pay more is never an easy thing, but this is the first time in five years we have done so. The five-year freeze on our Legacy Medigap rates means that rates have not kept up with rising health care costs over that time.
There will be a subsidy available for Medigap members who meet income criteria through the Michigan Health Endowment Fund. We encourage you to learn more about the program by visiting: http://bit.ly/1pAu8CX. Lastly, if you have questions about your coverage, you can contact one of our Health Plan Specialists by reaching out to us here: http://miblues.co/29OAEjf.
Thank you,
Naomi
I have been a member of Medgap program and I am disable I not 60 yet I became disable from working at a young age I wish I could work but I can’t not you guy are want me to go from 123.00 a month to 328.00 a month the insurance when I won’t be able to pay for my med cause Medgap my premium will so high I won’t be able pay my rent and light and gas bill
Hi Barry,
We understand your frustration and want to help you explore your options. We encourage you to call the number on the letter we provided and talk to one of our Health Plan Specialists.
We also encourage you to look into the subsidies available through the Health Endowment Fund. We work closely with the fund to provide funding for programs throughout the state. To learn more, please visit http://bit.ly/1pAu8CX.
Thank you,
Naomi
I am looking for another Blue Cross plan Is there a more reasonable plan I heard there was a PLAN N???
I have the legacy plan now but I don’t think I can afford the increase to 250.00 I now pay 122.00
Hi Arline,
We currently offer MyBlue Medigap Plan N. You’ll be able to review 2017 health plan options beginning October 1, 2016 and enroll in a new plan for 2017 during the Annual Election Period from October 15 to December 7.
Thank you,
Naomi
When will new pricing for 2017 become available?
Hi Kay,
Thanks for reaching out. You will receive a letter at the end of September with further information on your final 2017 rate. If you have additional questions, please call the number on the letter you received in July to reach a Health Plan Specialist, or you can contact us here, http://miblues.co/1Bb6oI4, and we’ll follow up directly. Thanks, Naomi
Why can’t I find more information about a BCBS medigap plan that is as close as possible to the Legacy plan at a rate that we won’t have to forego dinner every third day for?
Hi Jerry,
We hear your frustration and would like to help. We’d recommend calling the number on the letter we provided to talk to a Health Plan Specialist, who can help find a plan that best fits your needs and budget. Also, subsidies are being offered by the Health Endowment Fund. We encourage you to learn more about the program by visiting: http://bit.ly/1pAu8CX.
Thanks, Naomi
Fantastic!!! 150 per cent premium increase……. Wow!!! BCBSM has outdone itself!!!!Let’s make up for the past five years all at one time……. Next year you will increase the premium again……….THANKS FOR WORKING WITH US OLD PEOPLE ON FIXED INCOMES………
Hi Lawrence,
We hear your frustration and would like to help. The Health Endowment Fund is offering subsidies for financial support. You can find more information here, http://bit.ly/1pAu8CX. We’d also encourage you to talk to one of our Health Plan Specialists about affordable plan options that fit your budget and needs. Please reach out to them here, http://miblues.co/29OAEjf.
Thank you, Naomi
what determines the income level and what is included in that income?
Hi Paul,
Thank you for your question. The subsidy offered by the Michigan Health Endowment Fund will be available to Michigan residents who have an annual income at or below 150 percent of the federal poverty level ($17,820 or less for an individual and $24,030 or less for a couple).
If you would like more information about the Michigan Health Endowment Fund, you can find more information here: http://bit.ly/1pAu8CX.
Thank you,
Naomi
you are here to make money not help. increases of over 100% and an excuse of 5 years. we are not stupid. money money money money
Hi Hilda,
Asking our members to pay more is never an easy thing, but this is the first time in five years we have done so. The five-year freeze on our Legacy Medigap rates means that rates have not kept up with rising health care costs over that time. There will be a subsidy available for Medigap members who meet income criteria through the Michigan Health Endowment Fund. We encourage you to learn more about the program by visiting: http://bit.ly/1pAu8CX.
If you call the number on the letter you received, a Health Plan Specialist can answer your questions and help find a plan that’s right for you.
Thank you,
Naomi
I never received the letter you said I would get at the end of September. Would like to stay with BCBS, as that is the only health insurance I have ever had. At the cost of 257.00 I will have to find another company
Hi Geraldine,
We truly value your membership and understand your frustration. The Health Endowment Fund is offering subsidies for financial support. You can find more information here, http://bit.ly/1pAu8CX. We’d like to help you find an affordable plan option that fit your budget and needs. Please fill out the form here, http://miblues.co/29OAEjf, and one of our Health Plan Specialists will contact you directly.
Thank you,
Naomi
I’ve called the # for the MediGapSubsidyForm and no one at the State answers the phone. The online site offers no page to download the form. When i call Blue Cross they tell me that I’M doing it wrong. I don’t understand. They tell me that they can’t send me the form. Don’t know where else to turn. I need this extra coverage since i’m a cancer survivor and get tested constantly.
Hi Scott,
We apologize for this frustrating experience. If you follow this link, http://miblues.co/2dzN9Sn, you will be taken directly to the Medigap Subsidy Form on the Health Endowment Fund website where you will be able to submit your application.
If you would rather have someone reach out directly, please provide your information here: http://miblues.co/29OAEjf, and our Member Services Team will contact you.
Thanks,
Naomi
I NEVER received the second letter (“to be received by July 15”) and have called repeatedly asking for it. I don’t appreciate being brushed off with comments saying “that letter was just an estimate and all Legacy members would get finalized rate letters in October”. Hey BCBS, I STILL WANT THAT SECOND LETTER as well as THE FINALIZED RATE LETTER. How hard is it to reprint that MISSING SECOND LETTER? AND WHERE IS MY FINALIZED RATE LETTER? HOW can I “call the number on the letter” as you instructed others to do WHEN I NEVER RECEIVED LETTERS #2 AND #3????
Hi Michele,
We hear your frustration and want to help. One of our representatives will call you today to resolve the issue.
Thank you,
Naomi
Hi Michele –
Thank you for reaching out to us. Our Health Plan Specialists attempted to contact you at the number on file, but, unfortunately, were unsuccessful in reaching you. Would you mind filling out the form here, http://miblues.co/29OAEjf, so we can contact you directly?
Thank you,
Naomi
MY SISTER IN LAW QUALIFIES FOR HELP BUT HOW DO WE GET AN APPLICATIONS SO WE CAN APPLY FOR THE HELP FROM THE ENDOWMENT FUND. THANK YOU. [email protected]
i tried calling blue cross numbers for 25 minutes yesterday and 40 minutes today but with no success. i wanted information, NO LUCK
Hi Chaudhry, We’re sorry about your negative experience and would like to help. Note that we removed your account information for security reasons. Please fill out this form, http://miblues.co/1Bb6oI4, and we’ll get in touch with you directly. Thanks, Taylar
so as i read the explanation above my 94 yr old mother’s legacy plan will be increased from 122.86/month to $286+/month starting in january. i read somewhere that most bills will increase only 25%. how come my mother’s plan is going up over 100%. doesn’t seem fair.
Hi Janice, We understand your concern. Please know it is never easy asking our members to pay more. The Health Endowment Fund is offering a subsidy for those who qualify. You can learn more about it here, http://bit.ly/1pAu8CX. If you or your mother have any other questions, you can call the number on her letter to talk with a Health Plan Specialist. Thanks, Taylar
Fantastic analysis ! I was fascinated by the info ! Does someone know if my assistant might be able to find a template New Jersey Quitclaim Deed from Husband and Wife to Husband and Wife version to use ?
my A and B went from $123.00 a month to $126.00 a month my part D went from $27.00 a month to $35.00 a month my monthly take home on social security take home is now $1283.00 a month I contacted you by phone on 11/5/2016 please help me I cannot afford food my part C went from $123.00 a month to $314.00 a month I cannot afford to pay the extra $191.00 that is my house payment.
need to cancel policy
Hi Jane,
We truly value you as a member and don’t want to see you go. If you could provide us with some information here: http://miblues.co/29OAEjf, our Member Services Team will contact you directly to work with you to find the coverage that best fits your needs.
Thank you,
Taylar
Hello ,
Like many of the comments written here – I , too , waited for 40+ minutes on the phone to speak with an agent. ( My senior client , age 81 , called me for assistance reaching BCBS after two separate days of trying and waiting on hold endlessly).
Can a representative call or email me?
Thanks
Hi Jody, Thanks for contacting us. We’d love to get in touch and help resolve the issues you’re facing. If you contact us here, http://miblues.co/1Bb6oI4, a representative will gladly contact you to get the ball rolling. We look forward to speaking with you soon, Taylar
This is terrible for low-income and disabled people. A premium that increases by almost 500% cannot be paid. I was told that I do not qualify for a premium payment subsidy even though I am disabled and living on Social Security. Is this price gouging due to the Affordable Care Act? There has to be an alternative!
Do I have to see yearly increases or fixed dates??????
Hi Walt,
A rate freeze that’s been in place for the past five years expired as of this past July. Typically, insurance prices reflect the cost of care, but the rates people pay today for Blue Cross Legacy Medigap coverage do not reflect actual health care costs. Our competitors regularly increase rates to reflect rising costs for care. We encourage you to visit http://miblues.co/2a6lp8k, or contact us at the phone number listed in the letter, for more information.
Thank you,
Taylar
Does legacy medigap pay for rehab or Assisted Living after Medicare stops coverage?
I was quoted a rate of $177.33 /month for 2018 premiums. I was evidently low-balled in order to make a sale. I enrolled in Plan N; changing from Plan C I had previously. Now I am being ordered to pay a monthly premium of $277.56 beginning April 1, 2018. This is more than what I paid for the better Plan C I had in 2017.
What is going on here? I was not advised that I would be questioned on the state of my health (which incidentally is outstanding). I got a questionnaire in the mail, filled it out, mailed it to BC and now my new premium is $277.56. Totally unacceptable. I am a senior on a fixed income.
Hi, Angeline. We’d like to discuss this further with you. If you can please provide us with some information here: http://bit.ly/2BUNw87 a member of our team will reach out to assist. Thank you, Taylar
Will annual wellness checkups (physical exams) be covered?
Hi David, we’d be happy to help answer your coverage question. If you could provide some additional details here, http://miblues.co/1Bb6oI4, a member of our team will contact you directly. Thanks, Taylar