COUNCIL BLUFFS, Iowa (KMTV) — A retired Council Bluffs school teacher who was trying to understand why her Medicare supplemental premium jumped by more than $250 now has an answer — and relief — after her insurance company reversed the increase.
"The story aired on Wednesday and I was called on Friday," Frederiksen said.
Geri Frederiksen had a big problem. Her insurance company, Mutual of Omaha, told her the premium for her Medicare supplemental insurance was increasing. But then came a letter with good news.
"….We discovered that we made an error and your premium should not have increased from $468.83 to $726.03," Frederiksen read from an email.
Her new premium is $515 per month — an increase of $46.
Asked how she felt when she got that call, she said, "Oh, my goodness. The relief — happy — it was such a weight lifted. Yes, I was thrilled."
Frederiksen wasn't alone. Mutual of Omaha says it identified a system issue that resulted in an incorrect premium adjustment for 92 Iowans.
"We sincerely apologize for the error and the concern it caused," the company said in a statement emailed to KMTV.
"It was very stressful," Frederiksen said.
She says that she's tried to find a different supplemental plan, but a chronic lung condition means that other companies won't insure her.
Choosing a Medicare Advantage plan could be an option, but perhaps not ideal.
"I had always been told that — for me — it was not a good choice, but I was thinking that was a possibility," Frederiksen said.
For now, she's sticking with her plan, relieved to find a quick resolution.
"And I just thank you for contacting me in the first place and Channel 3 for covering it because I think it was crucial in getting this change," Frederiksen said.
Open enrollment for Medicare plans is happening now, and the Area Agency on Aging encourages people to contact a Health Insurance Information Program counselor for guidance.
READ THE FULL STATEMENT FROM MUTUAL OF OMAHA
"We identified an isolated issue with one of our systems that resulted in an incorrect premium adjustment for 92 Medicare Supplement customers in Iowa. We sincerely apologize for the error and the concern it caused. We have identified the affected customers and are working directly with them to correct their premiums and refund any additional amount they paid.
Mutual of Omaha serves approximately 1.3 million Medicare Supplement customers nationwide, including about 18,000 in Iowa. While this issue was limited to 92 customers in Iowa, we recognize the impact on those affected and are taking the appropriate steps to make it right.
Medicare Supplement premiums may change over time due to broader factors such as rising health care costs and overall claims experience across similar policies. These trends are being seen throughout the health care industry. For these 92 customers, however, the incorrect adjustments resulted from a specific system issue and were not related to their health or claims experience.
Plan F is a standardized Medicare Supplement plan. Under federal law, it is no longer available to people newly eligible for Medicare beginning in 2020. That change applies across the Medicare Supplement industry and was not specific to Mutual of Omaha.
We have identified the customers affected by this issue and are working directly with them to make the appropriate corrections. Because this issue was limited to this specific group of customers, other customers do not need to take any action as a result of this issue."
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XThis story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
