Medicare Supplement Overview
Several changes to Medicare insurance, especially to Medicare supplemental insurance, took place in June and have left many seniors confused. It is important that seniors who have Medicare insurance, or are about to apply for Medicare insurance, take the time now to understand and evaluate their Medigap options for 2011.
As of June 1, the available Medicare Supplemental Insurance plans changed significantly. Fostering the changes were the expansion of Medicare Part B coverage for more outpatient services such as doctor's visits; funding for which was a direct result of the recently passed healthcare reform legislation.
With the expansion Part B will soon cover a lot more services that used to require supplemental Medicare insurance. Also, seniors who required a supplement for prescription drugs will now find they are covered for prescription drugs through Part D. June 1st saw the elimination of 4 Medigap plans, and the addition of 2 new ones.
The main confusion among seniors stems from the eliminated plans, E,H, I and J. After June 1st any health insurance company selling Medicare supplemental insurance cannot offer these plans. However, seniors who have these plans need to know that if they are happy with them, the DO NOT have to change - all benefits under those plans will remain in effect, as long as they keep up the monthly premiums. However, their particular Medigap insurer may offer them the option of switching to a new plan - and seniors may want to think about that. Medigap experts advise that seniors my save some money by switching to one of the less expensive plans now offered such as Plan M or N, and because of the expansion of Part B and D - they may have overlaps in coverage they may not need by sticking with one of the eliminated plans. Also since these plans are no longer being sold, there will be a steady drop-off of those Medicare insurance recipients enrolled in them, and so it is likely that over time the premiums to keep them will increase.
Another area of confusion is between Medicare Advantage Plans and Medigap Insurance. While both Medicare Advantage and Medigap insurance plans are sold by private insurance companies, they are very different products. Medigap insurance is designed for those who elect original government Medicare, and are designed to provide for the "gaps" in converge found in traditional Federal Medicare. Medicare Advantage plans are Health Maintenance type plans that replace traditional government Medicare, and theoretically do not have the same gaps in coverage as traditional Medicare, so there is no need for supplemental coverage.
Yes it can all sound a bit confusing and like so much alphabet soup - that is whey we recommend you speak with one of our Medicare supplemental insurance specialists, to find the right Medicare insurance to suit your needs.