New Medicare plan touted as “luxury car” version of coverage

Highmark Health has a new Medicare plan it says offers the “luxury car” version of coverage. 

Bill Tuthill, vice president of Market Strategy for Federal Markets, Highmark Health, said, I’m super proud of Premier PPO.” 

The plan for $46 per month offers lower out-of-pocket matches and zero co-pays for primary care and specialists visits, he said. It also includes things like lab work, physical therapy and occupational therapy zero co-pays. 

“In the first two weeks, we saw a lot of people buying the plan,” Tuthill said. “We saw an opportunity to serve the market and it offers peace of mind.”  

Tuthill said interest varies from county to county but 20% to 50% of customers have opted into the plan.  

“For a new product with no name recognition, this is really encouraging for us,” he added. 

Highmark still offers the $0 premium plans, that he said are still the most popular because they cover a lot. 

Tuthill said he thinks the new plan is attractive because the population is aging and while median incomes have decreased slightly, the long-term trajectory shows people have money. 

“It’s like buying a car. Companies sell a lot of mid-range models, but some people want luxury models,” he said. “They are willing to pay more on the front end to save risk on the backend.” 

The Medicare supplemental plans aren’t going away, but they are more expensive, he said. In fact, they can bring premiums up to $250 per month.
“By the time the year is over, it adds up to $3,000. You can jump to this plan at $46 per month and save money.” 

Even so, Tuthill said the $0 premium plans are still the top selling plans and while the company is celebrating the success of the new plan, it is not turning away from offering the others. 

While Highmark is introducing a new product, Capital Blue Cross is also offering a wide range of plans to its members. 

Greg Biesecker, Capital Blue Cross vice president of Medicare Product and Government Program Sales, said, “Members can choose from a variety of Capital Blue Cross Medicare Advantage plans that include both medical and prescription drug benefits for the same premium, and there are $0 premiums for many of the Capital Medicare Advantage plans.” 

 Capital Medicare Advantage plans provide additional supplemental benefits, such as routine dental, routine vision, routine hearing, fitness, transportation to medical visits, and over-the-counter drug allowances that are not covered by Original Medicare.  

“Members do not have to pay a separate premium on our Medicare Advantage plans for included supplemental benefits, even on $0-premium plans,” Biesecker said. 

“Our plan puts money back in members’ hands,” Tuthill said.  

He explained the Part B premiums are what’s taken out of Social Security checks. Highmark’s Medicare plan lowers that amount by giving a $31 deduction.  

“Some people have a distrust of the $0 premium plans, but they have been contributing to this for years,” he said. “They are good plans and some offer $100 per month for over-the-counter medical items. That’s a good deal.”   

Capital Blue Cross also offers Medicare Supplement plans for low monthly premiums, particularly on Plan G, which is the most popular plan option, Biesecker said. Medicare Supplement plans are standardized across all insurers, and these plans pay secondary to Original Medicare.  

“Since these plans are standardized, they do not have supplemental benefits included in the monthly premium. New for 2024, Capital will be providing a supplemental benefit option in conjunction with our Medicare Supplement plans,” he said. 

Highmark Health has Highmark Direct stores in Allentown, Easton, Harrisburg, Mechanicsburg and Lancaster where people can sit down and talk to representatives about their options, he said.  

Capital Blue Cross also offers Capital Blue Cross Connect stores in Enola, York, Saucon Valley and Allentown.  

“Every plan has new things like improvements to dental benefits and reduced co-pays for primary care visits. Every year, the government changes the amount of reimbursements so people should do their research,” Tuthill said.  

Growth of Medicare plans has been around seven percent and Tuthill said that growth is expected to continue for the next few years because the growth is not just coming from people turning 65, but from older people who are talking to friends and wanting to find new policies.