June of 2010 is the Date for Changes in Medicare Supplement Insurance
Medicare Supplement Insurance is sometimes referred to as Medigap or Medigap Insurance. Medicare Supplement or Medigap plans fill the gaps in Original Medicare program. Medigap Insurance should not be confused with Medicare Advantage because that is a separate program.
Big changes will take place with Medicare Supplement Insurance plans on June 1, 2010. Learning about these changes now, will have you better prepared for these changes. Plan now to insure your future.
The new changes in Medigap or Medicare Supplement Insurance were put forth by the National Association of Insurance Commissioners. The purpose of these new rules was to protect consumers. The new Medicare Supplement changes remove duplicative benefits and add additional coverage.
In the early 1990’s the existing plans were created and had become stale. Some of the benefits in the old plans could not even be collected. Many people felt it was high time for changes.
Changes taking Place on June 1, 2010 are as follows:
1. Plan E, Plan I and Plan J are being eliminated.
2. Plan G will be modified. The Home Care benefit will be removed and excess charges covered at 100%.
3. Co-payments will be required in two new lower cost plans. They will be called Plan M and Plan N.
4. Companies offering Plan A must also offer Plan C and Plan F.
5. A hospice benefit will be included in all new plans being released.
The new changes do not affect only a certain number of plans. The situation is not what was originally thought. The old plans will no longer be available for sale in addition to the new plans being created.
New pricing will be available by all companies with these new plans. Meaning that companies no longer in the market will most likely get back in. More competition was the plan. Because of the new Hospice benefit all plans must be changed.
Senior aging into Medicare will appreciate these changes as will seniors which are healthy and already insured. Unhealthy seniors whic can’t change may see premium increases. As members of the old plans age, costs of these programs will increse.
Availble options should be investigated by all retirees as soon as possible. The existing Medicare agent would be a good place to start or they could try to find a new agent. The Internet is a great place to research Medicare Supplement Insurance.