Unused Benefits? Medicare Advantage Plans to Send Reminders Starting in 2025
Medicare Advantage plans are known for their supplemental benefits, but many beneficiaries remain unaware of these perks or struggle to access them. To address this, a new rule will require plans to send personalized reminders starting in 2025.
The Reminder System
Beginning in 2025, Medicare Advantage policyholders will receive a mid-year notification highlighting unused supplemental benefits like dental, vision, hearing, fitness programs, and over-the-counter allowances. This reminder, expected to arrive between June 30th and July 31st, aligns with the government’s goal of ensuring beneficiaries fully utilize the benefits they’re entitled to.
Low Utilization Rates
Studies indicate that a significant portion of beneficiaries don’t take advantage of supplemental benefits. A 2024 Commonwealth Fund survey revealed that three in ten beneficiaries did not use any supplemental benefits in the previous year.
Government Subsidies and Plan Responsibilities
Medicare Advantage plans receive higher government subsidies compared to traditional Medicare. This extra funding, estimated at $67 billion in 2024, is intended to support the provision of supplemental benefits. While plans aren’t supposed to profit from this subsidy, they should use it to offer valuable extras beyond traditional Medicare coverage.
Importance of Supplemental Benefits
Supplemental benefits are a key selling point for Medicare Advantage plans. They can include services like vision, hearing, fitness, dental care, and even food or transportation assistance for those with chronic conditions. However, a government accountability report found that many beneficiaries don’t actively use these benefits.
Ensuring Beneficiaries Receive Value
The new rule aims to address this by mandating that Medicare Advantage plans inform enrollees about all available supplemental benefits, along with instructions on how to access them. This transparency is crucial to ensure that taxpayer funds are effectively utilized and that beneficiaries receive the full value of their plans.
Challenges in Accessing Benefits
While many plans offer supplemental benefits, beneficiaries may face difficulties in understanding or accessing them. The reminder letter will include clear instructions, scope details, out-of-pocket costs, and customer service contact information to facilitate access.
Beyond Supplemental Benefits
Remember that while supplemental benefits are valuable, they shouldn’t be the sole factor in choosing a Medicare Advantage plan. Consider other factors like provider networks, prescription drug coverage, and overall plan costs when making your decision.
By implementing this reminder system, the government aims to empower Medicare Advantage beneficiaries to make the most of their plan benefits, ensuring they receive the full value of their coverage.
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