I felt pretty good when I read an article stating that Blue Cross Blue Shield was “recommeded for a modest 4% rate hike.” I have had their Medicare Advantage plan since 2008. It averages around $50 per month.

Reality set in when I received my 2010 info: my premiums rose 326%! Prescription co-pays also rose 29%. So I started making lots of phone calls. Those rates weren’t a misprint. Blue Cross Blue Shield of Michigan (BCBSM) said it was part of their new “streamlining” of benefits. BCBSM pointed to the Office of Financial and Insurance Regulation in Lansing. That office pointed to the Center for Medicare Services. To make a long story short, neither agency has any authority over any Medicare Advantage plans. Center for Medicare Services also added that there is no such thing as a nonprofit health insurance company.

So I started my search for those BCBSM Medigap plans. To the Internet I went – but no luck at all. More phone calls, and BCBSM admitted it was not there. Both Marquette and downstate offices of BCBSM said they would send me info and application forms. With only four weeks left in the enrollment period, still nothing in the mailbox.

So I called the BCBSM office up in Marquette. “It’s in the mail,” I was assured. They told me that their “Legacy” plans (C and A) they offer for us in the U.P. are now on their Web site as of Sunday, November 22, 2009.

Yes, there it was, finally. I downloaded the application and filled it out carefully. I made a special trip to the Post Office and mailed it “certified mail.” There were reasons I did it this way. One was the time limit on enrollment (December 31, 2009). The other reason concerns a press release I found from Mike Cox, Michigan Attorney General, dated September 21 of this year: “Blue Cross Legislation Puts Senior Healthcare at Risk,”

The release asked for a “Senior Right to Know” requirement from our Michigan legislature (HB 5235). He stated, “Blue Cross has a history of hiding Medigap from seniors.” Mr. Cox went on to say he has received complaints from seniors and insurance agents regarding “deceptive marketing practices relating to Medigap.” As far back as last March, BCBSM agreed, among other things, to display the Medigap option on its Web site (it finally appears eight months later).

Mr. Cox added, “Blue Cross has received millions in tax subsidies to help seniors in Michigan.”

BCBSM only offers Medigap plans A and C here in the U.P. Plan C’s monthly premiums are $112.12 per month for 2010. There is no “preexisting” conditional waiting period. Premiums do not rise due to “attained age.”

I suggest that anyone interested should download the application as soon as possible. Mail application by certified mail to ensure delivery.
Otto Uecker
Bark River
Editor’s Note: Mr. Uecker is a former BCBSM Advisory Board member.