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By Suzanne Blake
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Nearly seven in 10 Medicare recipients would drop their health care plans if they experience price increases, according to a new poll of about 1,000 patients conducted by SeniorLiving.org.
Why It Matters
Nearly 70 million Americans rely on Medicare for health insurance, with roughly half on Medicare Advantage, or privatized Medicare plans run by health insurers.
Read More on Health
Multiple insurers have announced they are decreasing their Medicare Advantage options for next year as the health insurance industry navigates lower government reimbursement rates.
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What To Know
Sixty-nine percent will leave their current plan if faced with price increases, the report found. Altogether, 82 percent of Medicare beneficiaries say affordability is the top priority when choosing a new plan and 60 percent would switch if their doctor moved out-of-network or key treatments were no longer covered, according to the poll.
“For Medicare recipients, it's always a good rule to do research each year to ensure you're getting the most affordable plan that fits your needs, but this year the sense of urgency in this regard is much higher given the dramatic uptick we're expecting in medical costs and coverage,” Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
The coming enrollment period could usher in major changes for many seniors, as two-thirds say they are open to changing their Medicare plan entirely.
"Our data shows that more Medicare recipients are open to switching their coverage, and with prices rising across nearly every sector (including healthcare) cost concerns are top of mind,” Taylor Shuman, tech expert at SeniorLiving.org, told Newsweek. “The leading reason people changed plans during the last enrollment period was the need for lower premiums. As consumers become increasingly cost-conscious, we can expect more Medicare enrollees to reevaluate their plans in response to rising prices.”
What People Are Saying
Shuman also told Newsweek: “While switching Medicare plans can be confusing and sometimes frustrating, especially if it means changes in covered providers or treatments, it can benefit consumers. Many beneficiaries find that changing plans helps them lower premiums, align their coverage with their current health needs, and ultimately feel more satisfied with their care.”
Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek: “More will choose newer plans due to cost and the inefficiencies of their current plan. As the government intends to lower Medicare reimbursements and add multiple prior authorizations, it is no wonder why there continues to be outright confusion as to what is going on in the midst of utter information overload of the types of plans at their disposal. Not to mention there may be a wave of people moving back to traditional Medicare from Medicare Advantage due to providers leaving their network.”
Beene also told Newsweek: “Over the last few weeks, many recipients who purchase additional healthcare insurance products to supplement their Medicare plans have been receiving letters warning of price increases coming into effect next year. With those price hikes in mind, those who rely on Medicare are taking a closer look at the current plan set-up and how it can be adjusted. Obviously price increases are nothing new, but in the past, recipients tended to stick with existing plans despite moderate cost jumps if they're not encountering any problems with it.
What Happens Next
Thompson said Medicare price increases are almost inevitable, and the government’s plan to lower reimbursements will likely make it harder for many seniors to find affordable care.
“We’re already seeing some doctors opt out of Medicare altogether because the economics no longer work for their practices,” Thompson said.
“I was on a call yesterday with a financial planner who said their mother had to change physicians after 30 years because her doctor stopped accepting Medicare due to these changes. That’s a glimpse of what’s coming—less access, higher costs, and more disruption for seniors who’ve spent decades building trusted relationships with their providers.”
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