Few Change Medicare Plans Each Year, But Three Times As Many Are Considering a Change in 2010, Allsup Survey Finds

BELLEVILLE, Ill.--(Business Wire)--
Allsup:

* Only 5 percent of seniors have changed Medicare plans, 16 percent might this
year
* Cost savings, better service and improved coverage among biggest drivers
to change plans as Medicare enrollment season nears

While only 5 percent of seniors have changed their Medicare plan since becoming
eligible, three times as many (16 percent) report they are likely to or are
considering switching plans in 2010, according to an independent survey of
seniors over 65. Allsup, a nationwide provider of Social Security disability
representation and Medicare services to seniors, commissioned the survey.
Medicare annual enrollment, when any Medicare-eligible person can switch plans,
runs from Nov. 15 to Dec. 31.

The Allsup Medicare Advisor® Seniors Survey also found that only one in four
seniors are very confident that their Medicare coverage would be adequate if
their health condition were to change.

"Many seniors are limiting themselves to the Medicare option they are familiar
with- the one they already have," said Paul Gada. Gada is Allsup`s personal
financial planning director and product manager for Allsup Medicare Advisor, a
Medicare plan selection service that helps people choose the most affordable and
appropriate plan for their specific healthcare needs.

"They may not be confident their plan can handle their changing needs. At the
same time, they have a number of different reasons as to why they`re reluctant
to make a change," Gada said. "For example, many people find the process of
comparing Medicare plans too confusing and difficult, especially since there
could be dozens available."

Barriers to Change

Four in five seniors say they`ve not changed plans because they are satisfied
with their current plan. However, for those not satisfied, the most significant
roadblocks are finding information, comparing plans and understanding the
different Medicare options.

One-third of these seniors (35 percent) say they have not changed plans because
it is too confusing given the many different Medicare options; 25 percent report
it`s too hard to find information or to compare different plans, according to
the survey.

Concerns about keeping doctors and securing treatment also deterred seniors from
changing Medicare plans. Ten percent report they did not change plans because
they were concerned a pre-existing condition would not be covered under a new
plan, and 5 percent were concerned the health provider they wanted to use would
not be a part of the new plan, according to the Allsup survey. Another 15
percent report they have not changed because they have traditional Medicare with
a group health plan through a former employer and 10 percent reported other
reasons, such as being unaware they could switch plans or believing they were
unable to afford other options.

"It can appear safer to stick with your existing Medicare plan because of some
of these unknown factors," Gada said. "But there is a greater risk that-as your
health changes and healthcare costs continue to rise-your current plan won`t
provide what you need. You may miss out on valuable benefits from re-evaluating
your Medicare options during annual enrollment season."

Benefits for those Switching

Although only 5 percent of seniors surveyed have switched plans, the most common
reasons for switching were to save money and receive better service.
Specifically, reasons for switching included the new plan:

* Cost less (4 of 10 respondents);
* Offered better service and customer support (3 of 10);
* Offered better prescription drug coverage (1 of 10); and
* Offered coverage for healthcare/procedures not covered under the old plan (1
of 10).

The Allsup survey also found that 25 percent of seniors report their health had
declined since enrolling in Medicare. One respondent noted, "I am not exactly
sure what is covered under my current package. As my health declines, I would
like to know what changes I am able to make."

For seniors, changing health is an ongoing concern that places even more
emphasis on Medicare annual enrollment.

"During annual enrollment, you have a very important window to evaluate and make
changes to your Medicare coverage," Gada said. "It`s particularly important to
do so when your health condition changes to make sure you have the best plan to
support your new needs."

Making Decisions with Limited Guidance

The Allsup Medicare Advisor Seniors Survey found most seniors have limited
support in choosing Medicare coverage or enrolling in a Medicare plan.

Two-thirds of respondents (67 percent) reported they select their Medicare plan
with no help. Twenty-five percent say they look for support from a spouse, adult
child or other family member and 8 percent from others, including their doctor,
a Medicare office, friends or a financial advisor.

More than three in four seniors (76 percent) receive no support when it came to
enrolling in Medicare, while 13 percent receive support from a family member and
11 percent from others, including social services and financial advisors.

"Before retiring, most seniors looked to their employers` benefits
administrators for help in selecting healthcare coverage. Now, their health may
be changing and good healthcare coverage is even more critical," said Gada.
"However, they no longer have the support of their employer. Too many rely on
their own limited knowledge, rather than seeking experienced, objective support
to make sure they receive the quality of coverage they need."

About the Survey

The Allsup Medicare Advisor Seniors Survey was a telephone survey of 200
individuals over 65 years of age who had Medicare coverage. The survey was
conducted between Sept. 18 and Oct. 2, 2009, by Ducker Worldwide LLC, an
independent market research firm based in Troy, Mich.

About Allsup

Allsup is a nationwide provider of Social Security disability, Medicare and
workers` compensation services for individuals, employers and insurance
carriers. Celebrating its 25th anniversary in 2009, Allsup employs more than 600
professionals who deliver specialized services supporting people with
disabilities and seniors so they may lead lives that are as financially secure
and as healthy as possible. The company is based in Belleville, Ill., near St.
Louis.

For more information, visit www.Allsup.com.

The information provided is not intended as a substitute for legal or other
professional services. Legal or other expert assistance should be sought before
making any decision that may affect your situation.

Editor`s Note: Details on the Allsup Medicare Advisor® Seniors Survey are
available at http://www.allsup.com/portals/4/AMA-Seniors-Survey-Nov2009.pdf

for Allsup
Mary Jung
(773) 429-0940
mtjung@msn.com
or
Dan Allsup
(800) 854-1418 ext 5760
djallsup@allsupinc.com

Copyright Business Wire 2009