A television news segment helped uncover an insurance error behind a steep monthly Medicare supplement premium increase for a retired Iowa teacher, whose bill has since been corrected.
The mistake affected dozens of customers, including retired Council Bluffs schoolteacher Geri Frederiksen.
Here's what to know
According to KMTV, Frederiksen had been told her monthly premium would rise from $468.83 to $726.03.
The increase would have meant finding an additional $257.20 each month to keep her Medicare supplemental coverage.
Her revised monthly premium of $515 is about $46 more than her previous payment.
Mutual of Omaha acknowledged the mistake when it contacted Frederiksen following KMTV's initial report. The insurer traced the error to a system issue affecting 92 Medicare Supplement customers in Iowa.
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Mutual of Omaha said it serves approximately 18,000 customers with that coverage in the state and about 1.3 million nationwide.
More background
Frederiksen told KMTV she had tried to find supplemental coverage elsewhere, but other companies would not insure her because of a chronic lung condition.
She also considered Medicare Advantage, though she wasn't sure it would meet her needs.
"I had always been told that — for me — it was not a good choice, but I was thinking that was a possibility," Frederiksen told the station.
In its statement to KMTV, Mutual of Omaha explained that Medicare Supplement premiums can change because of higher medical expenses and claims patterns for comparable policies.
However, the incorrect adjustments for these 92 customers stemmed specifically from a system issue.
The company also noted that federal law closed standardized Plan F coverage to those becoming eligible for Medicare in 2020 or later, a change affecting the entire industry.
What's being done?
Refunds for excess payments and corrected premiums were the remedies Mutual of Omaha said it was working on with the customers it had identified as affected.
"We sincerely apologize for the error and the concern it caused," the company said in a statement.
Customers outside the affected group didn't need to take action because of the issue, according to the insurer. Frederiksen can keep her existing supplemental plan at the revised premium.
The Area Agency on Aging encouraged people weighing their Medicare coverage options to seek advice from a counselor with the Health Insurance Information Program.
Counselors can guide people through choices such as supplemental coverage and the Medicare Advantage option Frederiksen had considered.
Frederiksen's relief over the adjustment was palpable.
"Oh, my goodness," she told KMTV. "The relief — happy — it was such a weight lifted. Yes, I was thrilled."
Where can I learn more?
A premium increase can be harder to manage when health conditions limit a retiree's options for switching Medicare coverage.
• A Florida enrollee's Plan N premium jumped 25%, prompting suggestions to switch while they were healthy.
• In Florida, a couple seeking a high-deductible Plan G encountered an agent's scare tactics.
• A Medicare shopper said a broker discouraged guaranteed issue coverage before his denial.
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