Omaha Insurance Solutions - May 2021

THE BET THAT SPAWNED THE FILET-O-FISH SANDWICH Inside the McDonald’s History Books

Every day, 68 million people dine under the iconic golden arches of McDonald’s. If you’re one of them, then you’re probably intimately familiar with one of the most famous offerings on the menu after the McRib and the Big Mac: the Filet-O-Fish sandwich. This bestselling entree looks simple enough. It features a fried square of wild-caught fish nestled under a slice of American cheese and a smear of tartar sauce. But it has a contentious history. In fact, Ray Kroc, the owner of McDonald’s who was immortalized in the 2016 movie “The Founder,” didn’t want the fishy offering on the menu. It ended up there anyway for one of the oldest reasons in the world: Kroc lost a bet. The story starts back in 1962 in Cincinnati, Ohio. That year, an enterprising McDonald’s franchisee

named Lou Groen had a problem. His customer base was largely Catholic and abstained from eating meat on Fridays (not to mention during Lent!), and they weren’t buying enough burgers to keep his restaurant afloat. According to the Smithsonian Magazine, on Fridays, Groen pulled in just $75 per day. To combat that lack of sales, he masterminded a beef-free option, and the Filet-O-Fish sandwich was born. The problem came when Groen pitched the entree to Ray Kroc. The founder didn’t approve. In a 2006 interview with Business Courier, Groen recalled Kroc’s reaction: “You’re

made a bet. On Good Friday in 1962, select McDonald’s would put both the Filet-O-Fish and a different meatless option, the pineapple-centric Hula Burger, on their menus. The entree that sold the best would stick around. Since you’ve probably dined on a Filet-O-Fish and never heard of Hula Burger, you can guess what happened. Groen sold 350 Filet-O- Fish sandwiches. And Kroc? Well, he moved just six Hula Burgers. Fishy smell or not, the filet was there to stay.

Want to read up on more fast-food capers? Pick up the book “Drive-Thru Dreams: A Journey

always coming up here with a bunch of crap!” he said. “I don’t want my stores stunk up with the smell of fish.” But at the end of the day, Kroc’s motivation was profit. So, the two men

Through the Heart of America’s Fast-Food Kingdom” by Adam Chandler. His KFC stories will blow your mind.

UNIQUE MEDICARE 2021 CHANGES, PART II PART D CHANGES AND THE SENIOR SAVINGS MODEL

In 2021, there have been major changes to Medicare Part D, known as the Senior Savings Model. The Senior Savings Model is an experiment that tests the impact of offering beneficiaries an increased choice of enhanced alternative Part D plan options that offer lower out-of-pocket costs for insulin. About 1 in every 3 Medicare beneficiaries has diabetes, and over 3.3 million Medicare beneficiaries use one or more of the common forms of insulin. Access to insulin can be a critical component of their medical management. If they have gaps in access, it increases their risk of serious complications, including vision loss, kidney failure, foot ulcers (potentially requiring amputation), and heart attacks. Unfortunately, sometimes the cost of insulin can be a barrier to appropriate medical management of diabetes. The Centers for Medicare & Medicaid Services (CMS) designed the Senior Savings Model for Part D plans to address President Trump’s promise to lower prescription drug costs. The model provides Medicare patients with new choices of Part D plans that offer insulin at an affordable and predictable cost. A one-month supply of a broad set of plan-formulary insulins will cost no more than $35 each.

There are a few important changes for Part D premiums. First, your drugs will be listed in the formulary. Second, Part D premiums for 2021 will probably rise an average of 9%. The average stand-alone Part D premium is $41 in 2021. The premiums range from $7 a month for the SilverScript SmartRx plan to a high of $89 for the AARP MedicareRx Preferred plan. Unfortunately, the Part D drug deductible went up from $435 to $445 on most plans. That is the max deductible CMS allows insurance companies to set. They can set it lower, though few plans did this year, and for those plans with zero deductible or a lower deductible, the cost is offset by either higher monthly premiums, co-pays, or both. Most of the time, that deductible is only applicable to tier 3, 4, and 5 medications. The first of the year is when I get the distressed phone calls because people must meet their deductibles. Many forget the deductible starts over again in January, and they are shocked when they show up at the pharmacy counter. I have to remind clients they need to meet the deductible first to get to the lower copay.

Thanks so much for reading! I’ll be back next month with Medicare Advantage changes in 2021.

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