Perspective               

HMO Pullouts Worry People with Medicare

Over 934,000 people with Medicare will lose their coverage in January 2001 as a result of HMO pullouts from Medicare. If your HMO is withdrawing from Medicare next year, you may be worried about paying for your health care. A recent fact sheet released by Mathematica Policy Research Inc. showed that people with Medicare who were notified in 1999 of their HMO withdrawals were more concerned than in previous years about paying for health care costs and prescription drugs. Forty-two percent of people surveyed who were in an HMO leaving Medicare said they were more worried about paying for health care this year than the previous year while sixty-eight percent were more concerned about paying for their prescription drugs costs.

Although HMOs are required by law to notify all their terminated members of other coverage options by October 1, the report noted that only 3 out of 4 people whose HMOs were leaving Medicare received notification from their HMOs and only a little more than half of those surveyed were aware of their other health care options.

When HMOs leave Medicare, it primarily hurts people with low income and limited education. The report found that most people forced out of their HMOs had annual incomes of $20,000 or less, and one-third of them did not even have a high school education.

If your HMO is leaving Medicare and you are confused about your Medicare options in 2001 for health coverage, call your State Health Insurance Assistance Program, or SHIP, and ask for advice and printed materials that explain your options for 2001. The number is listed in Medicare & You. If you have internet access, you can also visit www.medicare.gov to learn more about other options for health coverage available in your area.

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