Next year, seniors with Medicare benefits who want to enjoy a lifetime of pickleball games, laps in the pool, or walks on the treadmill will have less time to do so.
Seniors currently enrolled in Medicare health insurance plans have no time limits and can visit the Lifetime Club at any time without paying a separate fee. But starting in January, the Chanhassen-based fitness chain will limit Medicare members to visits from 9:30 a.m. to 3 p.m. on weekdays and after 2 p.m. on Saturdays. There are no restrictions on Sundays.
While it’s a bit unusual, gym industry experts said the Lifetime decision reflects the growing challenge facing fitness centers trying to accommodate discounted members while maintaining revenue.
Life Time said the change was made after negotiations with Medicare fitness program administrators over the fees the program would pay the company on behalf of Medicare members. Fees paid by Medicare providers are significantly discounted from the standard membership fee and can reach as high as $299 per month.
“Ultimately, instead of not renewing contracts and not offering more membership options to Medicare subscribers, we will continue to serve the large and rapidly growing Medicare population and continue to We aimed to create a solution that could offer a competitive price advantage,” said the Lifetime statement.
Minnesota’s Blue Cross and Blue Shield, HealthPartners, Medica and Ucare said about 18,000 seniors, mostly Minnesotans, are working out for Lifetime as part of their Medicare coverage.
money problem
Fitness center access is not a standard Medicare benefit that provides health coverage for seniors and certain specialties. However, a growing proportion of seniors are choosing to be insured through private insurance companies’ Medicare Advantage plans, which typically include gym access as an added benefit. Fitness benefits are also part of some Medicare supplements that private insurance companies sell to supplement your original Medicare benefits.
To manage fitness benefits, health insurance companies hire third-party companies such as SilverSneakers, Silver&Fit, and Renew Active/One Pass, part of Minnetonka-based UnitedHealth Group.
Lifetime says Medicare members can purchase upgrades for as little as $80 a month and get unlimited access during all business hours.
Arden Hills resident Bob Margolis, 77, visits Fridley’s Lifetime Club, formerly the Northwest Athletic Club more than 30 years ago. He stopped paying direct dues to Lifetime a few years ago because he got access through a Medicare medical plan.
Margolis said weekday training will be delayed until late in the morning due to new restrictions coming in next year. But he estimates that at least half of the people who use the Fridley Club most mornings are senior citizens, so he thinks the change will cause more trouble for others. .
“I think it’s clear they’re just trying to get more money from insurance companies,” Margolis said. “Or they will try to make people pay $80 a month if they don’t pay out.”
The change frustrated Edina resident Diane Raisen, 72, who visits Life Time’s club in Eden Prairie. Since Saturday morning fitness classes will no longer be open to seniors from next year, Raisen has already asked clubs if they can reschedule sessions to accommodate the new restrictions. She questioned why the company was making the change.
“We’re not overusing the equipment,” said Raisen, who works as an insurance agent.
Other types of fitness centers place limits on visit frequency and number of classes for Medicare health plan members. For example, some specialty gyms such as Pure Barre, F45 Training, and StretchLab include a fixed number of classes or sessions each month with membership through a partner’s Medicare program, with the option to pay an additional fee.
But Joshua Haberman, CEO of Bloomington-based insurance broker Haberman & Alexander, said he felt Life Time’s decision was unusual. For example, health clubs operated by the YMCA of the North do not impose hours restrictions on Medicare members.
“I’ve never heard of them restricting hours,” he said. “You are either in or you are out.”
Shawnee Christenson, New Hope’s insurance agent, who has complained about the change, said she’s heard of it happening in other states, but it’s the first in Minnesota.
Membership fee payment
John Atwood, founder and managing partner of Boston-area-based Atwood Consulting, which provides advice to gyms and other exercise facilities, says many fitness centers struggle with how they offer discounted memberships. said he was worried. It can be difficult for fitness facilities, including nonprofits like the YMCA, to offer subsidized memberships to Medicare his fitness programs like Silver Sneakers.
“Since the income from silver sneakers is so small, it’s hard to justify doing a program,” he says.
Prices are likely to be similar for clubs with monthly fees ranging from $9 to $30. But it’s not a fitness center like Lifetime, Atwood said.
Over the past few years, Lifetime has invested millions of dollars to open more resort-like clubs with numerous amenities such as saltwater pools, cabanas and spas. As Lifetime Club amenities have improved, the company has increased membership fees, with the lowest tier now at $99 per month.
Lifetime CEO Bahram Akradi told analysts in July that the adjusted pricing gives the company “manage the experience.”
Akraj added that membership fees could continue to rise.
In April, May and June of this year, Lifetime made a profit of $17 million, compared to a net loss of $2.3 million for the same period last year. This was largely due to an almost 10% increase in revenue per center member and a 25% increase in membership and registration fees, bringing him over $387,000.
Meanwhile, Medicare Advantage health insurance for seniors has become a profitable business for insurers.
Lifetime recognizes the importance of seniors in the club. Last year, the company launched the ARORA program for seniors. It offers membership discounts of about 10% for those aged 65 and over.
Atwood said the policy “may be a legitimate way for Lifetime to continue with this program.”
