Blue Cross Settlement Will Raise Seniors Medigap Rates | Michigan ...

Melissa Burden/ The Detroit News

More than 200,000 Michigan seniors who buy Medigap insurance from Blue Cross Blue Shield of Michigan will see their rates go up by 9.05 percent, after a settlement was reached today with state officials.

But a group of about 8,600 seniors who live outside Michigan and buy?Medicare supplemental insurance coverage from the Blues will see their rates go up by $83 a month, according to a settlement reached between the Blues, the Michigan Attorney General and Michigan Office of Financial and Insurance Regulation.

The rates are expected to rise Aug. 1, according to Blue Cross.

?We were pleased to reach an agreement by all parties that keeps the rate increase in the single digits for Medigap for eligible seniors residing in Michigan,? said Andrew Hetzel, a Blues spokesman, in a statement. ?Even with our new rates, Blue Cross continues to expect financial losses for its Medigap products. Our new rates for Medigap continue to be far below what it costs to provide?health care for our Michigan Medigap members.?

Last August, in a rate filing with the state, the Blues proposed a 21.7 percent composite rate increase and had proposed a new rate schedule for Medigap subsidies based on a senior?s income level. The proposal also asked to remove lower rates for subscribers who live out of state and remove a subsidy for subscribers whose premiums are paid in whole or in part by an employer.

State Insurance Commissioner R. Kevin Clinton, in a ruling issued today, agreed to the Blues? request to remove the subsidy for out-of-state subscribers, but withdrew its request to offer different subsidies based on income and remove the subsidy from employer-sponsored subscribers. The commissioner said the Blues would have the ability to pursue those issues again in future rate filings.

mburden@detnews.com

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Christopher J. Berry practices Michigan estate, business, probate and elder law attorney. He has been a lecturer, speaker and writer on estate planning topics. Learn More ? This entry was posted in Medicare. Bookmark the permalink.

Source: http://michiganelderlawcenter.com/blue-cross-settlement-will-raise-seniors-medigap-rates/

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