Changes Coming to Medicare Supplement in 2010
Medicare Supplement (Medigap) Plan M & Medicare Supplement (Medigap) Plan N
Beginning June 1st, 2010 Medicare Supplemental Insurance (Medigap) will include two new choices for consumers - Medicare Supplement Plan M and Medicare Supplement Plan N.
At that time Medigap plans E, H, I, and J will be eliminated as the "Preventive Care Benefit" and the "At-home-Recovery" benefit are removed and these plans become identical to other lettered Medicare Supplement plans. Medicare has deemed these two benefits unnecessary in the current Medicare structure. In addition to these changes, a hospice care benefit Co-insurance coverage will be added to all new Medicare Supplement Plans.
Current Medicare Supplement policy holders will be permitted to keep existing Medicare Supplement Insurance policies, however as of June, 2010 enrollment will cease into ALL current plans. It is not necessarily beneficial to purchase one plan over another (purchase the one that fits) because all plans purchased after June 1st will be in the "New" Medicare Supplement Plan policy design. Existing Medicare Supplemental Insurance policies (Policy holders) will be partitioned into one group, and plans purchased after June will be partitioned into new policy groups.
It is not certain that all Medicare Supplement (Medigap) providers will offer the new plans M and N, so a qualified, independent, advisor is suggested. Since most insurance carriers offer several plans it is important to shop around for the best price. The Senior Advisors Group can save you a lot of time and effort. Although most brokers represent 1 or 2 companies, the Senior Advisors Group represents over 40 medicare options, and ALL the top providers. They are also very helpful in explaining the various options available today and the new plans coming next year.
For individuals turning 65 before June 2010 the independent Advisor will be able to suggest a plan today as well as provide service and alternatives next year when the new plans and premiums become available. Be careful dealing directly with the insurance company as they may not be the best solution as they can only suggest their companies plans. You may use this tool to find Medicare Supplement Plans M and N in your area.
New Medigap Plan Design
Medicare Supplement Plan N will have similar benefits to Plan D, but there will be a $20 co-payment for doctor visits and a $50 co-payment for emergency room visits. The co-pay will apply after the $155 deductible is paid. The good news is the cost of these plans is expected to have premiums around 70% of the cost of Plan F or about 77% of current plan D. Medicare Supplement Plan M will also offer similar benefits to Plan D, but will only cover 50% of the part A deducible and none of the part B deductible. The cost of Plan M is expected to price at approximately 85% of Plan F (or 92% of current plan D).
Industry experts are enthusiastic about these changes as consumers will be attracted by the lower premiums. Unfortunately, these plans were designed by academics with zero understanding of what consumers want and we're not certain the design will fit with consumers’ desire, that is, these plans (M & N) do not include the $155 deductible, nor do they include excess charges allowed by most states. However we expect Medicare Supplement Plan N and Medicare Supplement Plan M along with the renewal of all other lettered Medigap plans will provide a real opportunity for consumers. For plan information in your area go to Find Medicare Supplement Plans. An internal consultant from the Senior Advisors Group will provide information on available plans, and answer questions about the best options and lowest premiums available in your area. (No salesman will visit your home.)
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Find Plans in your Area
Important Changes Coming to Medicare Supplemental Insurance Plans!
New Medicare Supplement Plans M & N
Available June 2010.
