2013 Medicare Supplement Rate Renewal FAQs

We know that you may have some questions about the upcoming Medicare Supplement Rate Renewals. So we’ve developed some key messages and FAQ’s that will hopefully help you with the rate renewals. Key Messages:  Recent health care costs have consistently increased, leading to higher premiums for consumers. These rate increases are based on a variety of factors, including rising claims and utilization costs among our Medicare Supplement members, costs of physician and hospital fees, and benefit changes and accompanying higher deductibles.  Regulators review these rates to ensure they are neither inadequate nor excessive.  Premiums must be sufficient to cover medical costs.  To help keep premiums lower and health care accessible, Anthem is investing in many initiatives to reduce the cost of care by promoting wellness and preventive care for our members and communities. We offer our Medicare Supplement members discounts on a number of health and wellness programs to help them manage their health care costs, while improving their overall health and well being.

Q&A

Q1. Why is Anthem seeking to raise rates for its Medicare Supplement customers? A1. Health care costs are continually increasing, leading to higher premiums for consumers. These increases are based on a variety of factors including rising doctor and hospital costs and utilization. We must reflect these costs and expenses in its premiums to maintain benefits and keep health care accessible.

Q2. Will Anthem continue to raise rates? A2. We are always striving to keep the cost of health care coverage down to help ensure it is accessible. At times, this means making difficult, but necessary decisions like raising rates to cover the costs of care. We regularly evaluate our rate structure and we file our rates annually with the Department of Insurance, which is the entity that reviews our proposed rate changes.

We offer a variety of Medicare health benefits coverage plans and we are dedicated to working with our beneficiaries to find health care coverage plans that are most appropriate and beneficial to them.

Q3. How are rates determined? A3. An actuarial team reviews historical and current data to determine necessary rates, including, past experience of use of medical services, demographic and trend projections, and predictions of future utilization and costs (based on historical and current data).

Q4. What options do Medicare Supplement beneficiaries have if they are unhappy with what they are being asked to pay? A4. We offer a variety of Medicare Supplement health benefit plans and we are dedicated to working with our beneficiaries to find health coverage plans that meet their lifestyle and financial needs. While we recognize rate increases are difficult for some of our members, members may have an opportunity to change to another Anthem Medicare Supplement plan to moderate their monthly premiums. Members can also elect to cancel their Medicare Supplement policy and retain only Original Medicare.

Q5. Is there any other way to lower premiums? A5. Yes. We offer discounts for paying annually or having payments deducted monthly from a bank account.

Q6. Why should Medicare Supplement beneficiaries stay with Anthem? A6. When evaluating health insurance options, it’s a good idea to look at several factors – beyond price. We advise Medicare beneficiaries to consider the company’s experience and financial viability, the service it provides and the benefit plans and value added benefits it offers. When Medicare beneficiaries consider all of these factors, we believe they will find our products represent a great value.

Q7. What is Anthem doing to contain the rising cost of health care? A7. To help keep premiums lower and health care accessible, we are investing in many initiatives to reduce the cost of care, promoting wellness and preventive care for our members and communities, and working with providers to encourage high-quality, evidence-based care, which costs less over time.

Q8. Why are some of your members receiving such high rate increases? A8. There were changes in marketplace demographics and utilization that could not be forecast. Demand for medical services drove up the cost of health care at unprecedented rates. To ensure we have adequate funds to pay claims on behalf of our members now and into the future, it must reflect these increases in its rates.

If you have any questions please call Broker Services at (800) 633-4368.

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