Suspect Calls for Plan Changes
We’ve been hearing stories lately from individuals that have received phone calls, typically from their Part D drug plan carrier, about a different plan option that’s $0/month and includes dental and certain other extra benefits. These can be very misleading calls and if you agree to sign up for the plan they are recommending it could cause disruptions to the current plan(s) you’re on. We wanted to write a post explaining these calls, why they are coming and what happens when you do agree to sign up.
Firstly, what are these calls all about? In short; these are sales calls trying to get you to enroll into a Medicare Advantage plan. By enrolling into any Medicare plan, the insurance companies that sponsor your plan technically have implied permission to contact you to tell you about other offers and plans. This is exactly what is happening.
These callers will advertise ‘additional benefits’ as a standalone option that costs $0/month. These are not plans you can have in addition to your Supplement and Part D plan and this usually causes a lot of confusion. Agreeing to sign up for the plan being advertised over the phone could cause your current Supplement plan and Part D drug plan to be cancelled. Getting back onto your previous plans can be a hassle.
This leads to the next question; If I’m already signed up for a plan with the insurance company, why do they want me to sign up for a different plan? The answers here are more speculative (we aren’t these insurance companies) and we don’t want to speculate. It would seem though that they are simply trying to increase revenue.
With Medicare Advantage plans, a portion of your monthly Part B payment is being given to the insurance company sponsoring the Advantage plan by Medicare. For example: Say you pay the base premium for Part B ($148.50 in 2021) and sign up for Company A’s, $0/month Medicare Advantage plan. While you still pay the full cost for Part B, Medicare takes a percentage of the amount paid by you and gives it to Company A for managing your Medicare coverage. This is also how insurance companies are able to offer plans at $0/month. So, by signing you up for an Advantage plan, the insurance company gets more money from Medicare than they would otherwise. This seems to be the most sensible motive for the calls.
Lastly, what happens if you agree to sign up? If you agree to sign up, it will cause disruptions and most likely cancel your current coverage. A lot of these calls highlight the best features while glossing over the meat and potatoes. We would never recommend basing an insurance policy decision on extra benefits alone. At Doctor’s Choice we take great pride in the level of guidance and attention we give in helping you decide on a plan.
Unfortunately, these calls don’t always take that same approach and don’t always have your best interests in mind. The old adage “if it sounds too good to be true, it probably is” certainly can apply to the Medicare world. We would never recommend signing up for a plan you’re unsure of over the phone. It’s always important to know the full details of the plan and what signing up for it would do to your current coverage. If you met with us to enroll, we went through this process with you and helped pick a plan that not only met your needs, but that you understood.
Medicare can be a tricky maze to get through on your own. If you ever receive a call like this and are unsure of what it means we’re happy to help explain. Chances are if you’re reading this, you enrolled into Medicare through Doctor’s Choice. We make it a priority to provide a high level of guidance and support to all of our clients. If you’re comfortable with the plans you have you can simply tell the caller “I’m all set.”