HMOs Drop More Medicare Enrollees

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HMOs Drop More Medicare Enrollees

About 536,000 Medicare enrollees are looking for a new health plan. Over the past three years more than 1.6 million seniors were affected when their Health Maintenance Organizations (HMO) discontinued service. Confusing new rules and less comparative information make shopping for a new plan tougher this year. Health and Human Services Secretary Tommy Thompson gave health plans an extra two and a half months this year to decide whether to drop out of Medicare. Medicare beneficiaries dropped by their HMOs do not have much time to shop for a new plan. Affected beneficiaries must make a decision by the end of the Special Election Period (October 1 through December 31, 2001).

Complicating matters, beginning in 2002 enrollment periods become more restricted. The choice made during the Special Election Period generally locks seniors into a plan for 2002.

If you are faced with the daunting task of finding a new plan your state has free health insurance counseling assistance. Take advantage of the service. You may get the number for your State Health Insurance Assistance Program by calling 1-800-MEDICARE (1-800-633-4227) or the Eldercare Locator at (800)677-1116.

The Medicare Rights Center has a variety of publications to help you get the most from your Medicare choices, including tips on what to do if your HMO is discontinuing service. To learn more visit www.medicarerights.org or contact Medicare Rights Center, 1460 Broadway, 11th Floor, New York, NY 10036, (212) 869-3850.

Sources: "Medicare HMO Extension Poses Difficulties," Reuters, May 30, 2001. "Nothing's Quiet on the Medicare Front," Kiplinger's Retirement Report, August 2001.

To read tips that will help you choose a new Medicare health plan, click here: http://www.tscl.org/newContent/101192.asp.

November 2001

This article first appeared in Volume 6, Issue 11 of `The Social Security and Medicare Advisor` newsletter (November/December 2001). To receive future editions of `The Advisor` in its special, free e-mail version, please click here.