Aug. 28--%HTMLlat1; %HTMLsymbol; %HTMLspecial; ] Medigap Rate Increase Sought
Increase In Medigap Rates Proposed
Plan Would Affect Seniors In State
By DIANE LEVICKCourant Staff WriterConnecticut senior citizens who get their private Medicare supplement insurance through AARP may pay 8.3 percent to 10 percent more next year under rates proposed by the company that provides the plans.
United HealthCare Insurance Co. -- part of UnitedHealth Group -- is seeking the Connecticut Insurance Department's approval for the new rates, which would affect about 79,000 seniors.
The rates would apply to policies renewing Jan. 1 or later. The policies fill in the gaps left by the federal Medicare program, such as hospital deductibles and the portion of doctors' charges that seniors would otherwise pay out of pocket.
The rate increases for 2009 would be steeper than the increases seniors have faced this year, which ranged from 2.5 percent to 6.8 percent on standardized plans -- the ones sold from Aug. 1, 1992 on. Increases this year averaged 1.2 percent on nonstandardized policies sold before Aug. 1, 1992.
The Insurance Department will hold a public hearing on the proposed rates on Sept. 11 at 9 a.m. It will be at the department at 153 Market St., Hartford, room 601 on the 6th floor.
Consumers may also mail comments to the department at P.O. Box 816, Hartford, CT 06142-0816.
UnitedHealth wouldn't comment on the 2009 increases Wednesday other than to say that in general, its increases are "based on increased costs in medical care and physician fees as well as increased cost in medical services utilization."
Medicare's deductibles are climbing, for instance. The Part A (hospital inpatient) deductible will rise from $1,024 to $1,064 next year, and the Part B (doctors' care) deductible will climb from $135 this year to $136 in 2009, the company noted.
"It is our policy not to share any rate information for a particular state until we have received approvals from the state," UnitedHealth said in a written statement.
If Connecticut regulators approve, the monthly premiums on the popular standardized Plan F would rise 9.4 percent from the current $178 a person to $194.75. Plan C premiums would go from $177 a month to $193.75. Roughly 75,000 residents have one of the standardized plans A through L this year.
About 4,000 Connecticut seniors have one of the pre-standardized policies. The M6, J6 and P6 policies, for example, would cost 8.4 percent more next year -- $235.25 per person a month instead of the current $217.
With Medicare supplements, seniors stay in the traditional federal Medicare program. "Medicare Advantage" plans, such as HMOs and PPOs, are an alternative. They replace traditional Medicare and are run by private insurers.
Contact Diane Levick at dlevick@courant.com.
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