More than 2,000 people with Medicare Supplement policies from Minneapolis-based health insurer UCare could lose coverage next month after the company announced it would terminate Medigap policies for those with traditional Medicare.
Newsweek has reached out to UCare for comment via email.
Why It Matters
Around 2,500 people with Medicare Supplement policies could face coverage gaps because UCare has opted to avoid the out-of-pocket costs associated with the Medigap policies. This could cause significant financial strain if seniors do go without healthcare and then find they need it during that time period.
What To Know
If seniors haven’t purchased a Medicare Supplement plan, they are likely required to pay roughly 20 percent of their costs. Those who relied on UCare’s plans still can secure alternate coverage before January but need to act fast.
“The situation going on at UCare is very alarming to those beneficiaries,” Chris Fong, CEO of Smile Insurance and a Medicare specialist, told Newsweek. “We have seen a lot of companies get out of Medicare entirely which includes UCare through a complete shutdown of their Medicare business or Cigna who sold Healthspring, which is their Medicare division.”…