Blue Cross cuts back on Medicare Advantage for 7,500 rural Montanans

HELENA – Blue Cross Blue Shield of Montana sent notices to nearly 7,500 residents in 30 counties statewide saying it will no longer offer Medicare Advantage in 2018, with officials citing lack of service and costs.

The move has prompted one Great Falls insurance agent to say it's another blow for health care in rural counties.

Medicare Advantage will still be offered in nine of the state’s more urban counties, officials said, adding that residents throughout the state can still get the Medicare Supplement Plan, which can be catered to their needs.

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John Doran, spokesman for Blue Cross Blue Shield of Montana, said they want to “provide the best service possible.”

He said it was not only a service decision but a financial decision as well. Doran said the company often analyzes plans to find the “best affordable solutions to provide best access possible.”

The counties that will still receive Medicare Advantage are: Cascade, Flathead, Gallatin, Lake, Lewis and Clark, Lincoln, Missoula, Ravalli and Yellowstone, Doran said. Those nine counties have 27,000 residents registered with Medicare Advantage.

According to Medicare.gov, Medicare Advantage Plans provide all Medicare Part A (hospital insurance) and Medicare Part B (medical insurance) coverage.

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A Medicare Supplement Insurance policy, also known as Medigap, are sold by private companies. They can help pay some of the health care costs original Medicare doesn't cover, such as copayments, coinsurance, and deductibles, according to the website.

A Medigap policy is different from a Medicare Advantage in that it only supplements original Medicare benefits, Medicare.gov states.

Doran said Blue Cross Blue Shield of Montana notified the federal government of the change.

Leslie Thompson of Leslie Thompson Insurance in Great Falls said her office has been receiving about 100 calls a day since the letter went out and said it hurt rural counties.

She said people in the nine counties have to sign up again for altered plans.

"The plans have become more mediocre than the good plans," she said. "Some of the things that people loved they took away."

She said plans are $62 a month, but added many seniors are on fixed incomes.

Doran said plans are often updated and changed and people have to register every year.

He said there would still be options for Montanans in rural counties in which Blue Cross Blue Shield would offer products.

Kyle Schmauch, spokesman for state Insurance Commissioner Matt Rosendale, said their office was aware of the notice to Montana residents.

“We feel for people being harmed by this but our office doesn’t have regulatory authority,” he said.

The news irked Teton County resident Charles Crane, 79, a retired farmer who lives north of Choteau but said he goes to Cascade County for some medical needs. He said he was notified through the mail on Thursday.

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He said he contacted his insurance agent and was told she had received several other calls as well. 

“It just made me mad when I got letter,” he said. “But we’ll get insurance, no question about it.”

“I just think it’s a funny deal,” Crane said. “Maybe we are just as well without them.”

Doran said Blue Cross Blue Shield of Montana is helping customers with the change.

“We are doing everything possible to help our members transition to a new Blue Cross product or a new product that fits their health care needs,” he said. “We are working with our agent community and provider partners and own customer service teams to assist members.”

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Doran said people with questions should call the number on the back of their insurance identification cards.

“We have a dedicated customer service team to answer questions and offer additional support,” he said.

But Crane remains angry.

“It just ticked me off with what they did,” he said, adding he’s fortunately not had to use the service much. “They made money on me.”