The Affordable Care Act, or as many people call it Obamacare, implements a few services that affects seniors. We have listed four important ways the ACA will impact your Medicare coverage.

$0 Preventive Care for Seniors

While most of the Obamacare provisions don’t affect seniors, seniors on Medicare do benefit from the new ACA $0 preventive care. This preventive care includes such medical care as vaccinations, health screenings, Medicare smoking cessation counseling, and mammograms.

Obamacare to Close Donut Hole

The donut hole is the gap in Medicare Part D coverage (AKA Prescription Drug Plans). In 2014, seniors who hit the “hole” will pay 47.5% of brand name drugs and 72% of generic drugs. By 2020 the hole will be closed bringing out-of-pocket costs drug costs during this time to 25%. Remember this only covers drugs that are on your formulary (the list of drugs that your Rx plan covers).

ACA Plans to Crack Down on Medicare Fraud

Over the years Medicare crime has risen with elaborate schemes to steal money from the Medicare fund, and Obamacare is trying to do something about it. Medicare generally pays medical claims within 14 days, therefore it has been easy to put in a phony claim and collect money very quickly. Obamacare’s goal is stop this system of “‘pay and chase,’ with federal authorities chasing after criminals to recover a fraction of the money paid out,” as the Miami Herald stated. Here are the 4 things that Obamacare is setting out to do:

  • Tougher penalties for offenders
  • Expand administrative powers
  • Allot $350 Mil to fight corruption
  • Give Medicare the power to suspend payments to providers*

*This is if a “’credible allegation’ of fraud, including tips from consumers,” has been reported to Medicare, according to the Herald.

ACA Does Not Affect Medigap Enrollment

As you may know, the Affordable Care Act guarantees that an insurance company must enroll you regardless of a preexisting condition, and the insurer cannot charge you more. However, this does not affect seniors over 65 looking into Medigap plans. It is important to enroll in a Medigap plan during your initial 6 month enrollment period.

To learn more about how the ACA affects your Medicare call the number above or contact Senior65.com.