Cavalcade of Risk #141: Call for submissions

Jay Norris hosts next week's CavRisk. Entries are due by Monday (the 3rd).

NB: We're now using this submission tool: The BC WorkAround

Once there, you'll be asked to provide:

■ Your post's url and title
■ Your blog's url and name
■ Your name and email
■ A (brief) summary of the post ("Remarks")

At the bottom of the form, you'll see a drop-down menu; simply select "Cavalcade of Risk" then press "Submit" and you're good to go.

And PLEASE remember: ONLY posts that relate to risk (not personal finance tips and the like).

Thanks!

Seniors Need to Pay Their Fare Share

A few weeks ago President Obama proposed a new tax on seniors that use THEIR OWN MONEY to purchase what he considers a rich Medigap plans. If you have a "first dollar" Medicare supplement plan, such as Medigap plan F, Obama believes you should pay more than anyone else for Medicare Part B.

On September 19, 2011, as part of his deficit reduction proposal, President Obama recommended charging a 30 percent surcharge on Part B premiums to new beneficiaries that purchase Medigap policies with “near firstdollar” coverage, beginning in 2017

I don't know about you but that doesn't sit well with me.

The Medicare Trust Fund Lie

Where does he think he has the right to tell me how to spend MY money? After all, they took money from us for years to pay for Medicare. Money that was supposed to be safely stored in a trust fund.

Only recently did Washington finally admit there is no trust fund, it was all a lie. They spent almost every dime we "invested" and now they want more.

I don't think so.

More Rocket Surgeon Ideas from Washington

Some of the other big ideas from DC include:

bar Medigap policies from paying the first $550 in cost-sharing liability and limit coverage to 50 percent of the next $4,950 before the plan could cover 100 percent of beneficiaries’ out-of-pocket costs.

CBO estimates this policy would achieve $53.4 billion in savings over 10 years, if implemented in 2013.

An alternate approach, described by CBO in its 2008 report Budget Options, Volume 1: Health Care, and would impose a 5 percent excise tax on all Medigap insurers

Let's think about this a moment.

If WE pay more out of pocket that will save the GOVERNMENT money.

Apparently they believe we won't go to the doctor when we are sick if we have to pay for it.

That's like saying I need new brakes on my car but I won't get them fixed because my car insurance won't pay for them.

Their second proposal is just as goofy. If the government places a 5% surcharge on Medigap carriers guess who pays that tax?

The people who buy the policies.

We believe that Medigap plan F is a good plan but there are better VALUES to be found in plan G and plan N.

We also believe Washington has no right to tell us what we can and cannot buy and how we should spend OUR money when it comes to health care and health insurance.

Medigap F Over the Top

Medigap plan F is quite popular in Georgia, but is it a good value? Not in my opinion. Plan F is one of the highest cost Medicare supplement plans and in most cases is way overpriced.

Recently I was asked to compare an existing plan F against other carriers. This individual had a BCBSGA Medigap plan F, a very solid and competitive carrier. His current rate was $10 less than my best rate for the same plan.

But the story doesn't stop there.

BCBSGA uses a community rating system and will be increasing everyone's rates in January, 2012.

The same is true for USAA and AARP. They will be increasing rates for their policyholder in January as well. Even if you bought from them in October of 2011 your rates will increase in January.

What fun is that?

At this point we don't know how much the rates will change but they will go up.

If he bought the same plan F now (from a different carrier) his rate would hold for 12 months.

While we can't calculate the savings now for plan F vs. his new rate, I can tell him with certainty that enrolling in plan G will save him more than $300 per year vs. his current plan. Also, some Medigap carriers do not offer a plan G so they are effectively saying this is what we offer, take it or leave it.

Medigap plan F is the most popular so many carriers will price that product competitively on new business but will not be as aggressive on the value oriented plans such as G.

The spread will become more pronounced over the years as Medicare supplement plan F usually has higher rate increases than the other plans. So over time, plan F becomes increasingly more expensive while the other plans deliver more value.

Medigap plan F is a ripoff that is heavily promoted by carriers and agents that seek to take advantage of seniors.

If you have plan F, especially with a carrier such as AARP, Blue Cross, or USAA you should compare Medigap rates now and lock in a lower rate for 12 months.

Unless of course you just like paying more . . .

When you pay more you don't get more, it simply means you paid too much. That's just like pouring money down the drain.

Kermie says: It's Health Wonk Review Time!

Joe Colucci, of the New America Foundation blog, hosts this week's Muppet-inspired collection of wonky posts. So hop to it!

Welcoming 5772

As we enter a New Year, our thoughts turn to new beginnings, new possibilities, new hopes.

May you be inscribed for a blessing in the Book of Life.

L'Shannah Tovah T'kateyvu.

HHS Powergrab: 1st Amendment be darned

Cato's Michael Cannon reports on the latest shenanigans from HHS Secretary Shecantbeserious:

"The guidelines evidently require all communications to be approved by the Assistant Secretary for Public Affairs. Also: no off-the-record communications."

Hey Kathy: this word "transparency." I do not think it means what you think it means.

Baby Joseph Update: Sad (but not unexpected) news

Baby Joseph, whose story captured our hearts (and enraged our sense of fairness), passed away "Tuesday night in the comfort of his own home in Windsor, Ontario."

There really wasn't a realistic chance for long-term survival, but that was never the end-goal here. Rather, it was to grant him the chance to die with dignity and grace under the loving care of his parents.

Rest in peace, Baby Joseph.