- First, because for the past five years they have been frozen by an agreement between Blue Cross and the state of Michigan. Health care costs have risen over that time, but premiums haven’t changed.
- Second, because under an old regulatory law, Blue Cross was required to subsidize Medigap by absorbing financial losses that result from our premiums not being enough to cover the cost of health care for our covered members. In Legacy Medigap, health care costs were higher than premium revenue by about 150 percent in 2015 – totaling more than $200 million in losses.
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Nov 12, 2019 at 4:55pm
As you consider your options with Medicare Supplement, Blue Cross Blue Shield wants to make you aware of some changes that could affect your health plan decision. The Medicare Access and CHIP Reauthorization Act of 2015, or MACRA, will affect supplement plans nationwide that cover the Part B deductible. Medicare supplement plans that cover the Part B deductible (Plans C, F, and high?deductible F) will no longer be available for individuals who turn 65 or become eligible for Medicare on or after Jan. 1, 2020. Because of these changes, Blue Cross now offers Plan G, which is comparable in benefits and available at a less expensive price than Plan F.
Jul 29, 2016 at 2:11pm
Teresa, 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. In addition, per your comment, rates are 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. 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://miblues.co/29y2dRj. 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
Jul 29, 2016 at 1:03am
Can you explain why people on Medicare that are under age 65 are paying the highest premiums out of EVERYONE for a Medigap policy? You say that prices are set according to age, gender, tobacco use, and where you reside in the state, however, this is absolutely not true! Since the only reason you could be on Medicare, if you are under age 65, is if you have a medical condition which causes disability, that has to be the reason for charging them the highest premiums! The ACA protects people from being charged more because of prior conditions and seniors don't have their health status considered when setting premium rates for Medigap but the disabled do...? I, too, had a 260% increase in my Medigap premiums recently... Plus I still pay my Medicare premium and my Prescription coverage premium. It's just too much......I am curious how much the salaries of some BCBS employees go up after these rate increases!
Jul 25, 2016 at 11:57pm
Hi Leigh, Legacy Medigap members in Michigan are affected. Your increase was included in the second letter you should have received about your coverage around July 15. If you did not receive this letter or you have further questions, we encourage you to reach out to us at http://miblues.co/1Bb6oI4 and someone from our team will reach out directly. Thank you, Naomi
Leigh Ann Gaskill
Jul 25, 2016 at 7:48pm
what zipcodes are being affected by the increase?