Medicare Supplement Insurance Changes as of June 2010
Currently it is estimated that there are over 10 million Americans with Supplemental Insurance or a Medigap Plan. If you are one of them, then you know that Medicare was not designed to cover your entire healthcare needs. However you may not know that the regulations regarding these supplemental, or so-called Medigap plans are changing this June.
The changes were actually created a year ago by the National Association of Insurance Commissioners, designed to lower the cost of Supplemental Plans, eliminate duplicate coverage, and simplify choices. The changes suggested take effect this June.
The major changes are:
- Plans E, H, I and J have been eliminated.
- Two lower-cost Plans, designated M and Plan N will become available. These plans are more affordable to Medicare recipients, however they do have co-pays.
- The Home Care benefit will be removed from plan G and the 80% coverage will be increased to 100% coverage.
- Plans A and Plans C and F must be sold by all insurers offering Plan A.
- A hospice benefit must now be included in all new plans.
Plans A, B, C, D, F, K and L remain basically unchanged, with Plan F still being the most comprehensive. Plan M and N, have been initiated to offer many of the same benefits as F, in a more affordable option, with the insured sharing some of the costs of treatments via copays. If you have one of the plans that will be eliminated, you can keep it - they just will no longer be sold. You also may be given the option to elect one of the new, or modified plans. It is strongly recommended that if you have one of the plans that will be eliminated such as Plan J - that you do consider switching. Since these plans will no longer be sold, as they are phasing out, the premiums for them will likely increase.
One of the key factors regarding the changes is that once they take effect in June, providers will be allowed to reset pricing for any Medigap plans they sell, old or new. In theory this should create a more competitive market place, and drive the cost down, which is good news for cash-strapped seniors in need of supplemental Medicare insurance.