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November 1, 2009

Medicare Supplement Changes on June 1, 2010

There are changes coming to Medicare Supplement aka Medigap Coverages beginning in June 2010. These changes will effect only those policies that are issued after June 1st, 2010. The changes include the elimination of four plans, the addition of two new plans and modifications to other plans.

Plans E, H, i & J are being phased out mostly because their prescription drug benefits are now being provided thru Medicare Plan D (not to be confused with Plan D shown on chart below).

Seniors needn't worry if you are covered on one of these plans as they will be grandfathered and their benefits will continue without interruption. This should be good news for people with chronic or serious health problems that may have to stay on their current plans. In fact, there may be some price reshuffling as the new plans and modified plans are introduced to the public.

These are the plans as currently shown in the 2009 pamphlet "Choosing a Medigap policy" :

Here are listed the major changes in effect in June 2010:

1. Plans E, H, i & J will be eliminated.


2. Added Hospice Coverage as a basic benefit to all plans.


3. Plan G will be modified. The 80% Medicare Part B excess charge benefit with be replaced to a 100% Medicare Part B excess charge benefit, and the At-home Recovery benefit is being deleted.


4. Removed the At-home recovery benefit from Plan D.


5. Introducing new lower cost Plan M. Plan M will duplicate Plan D but with a 50% coinsurance on the Part A deductible. Your savings should be about 15% lower than Plan F.


6. Introducing new lower cost Plan N. Plan N will duplicate Plan D with the Part B coinsurance being paid, less a $20 copay per physician visit and a $50 copay per emergency room visit, unless the beneficiary is admitted to the hospital. Savings about 30% on your monthly premium.

While most of our insured will continue to choose Plan F, we expect to see a lot of interest in the new plans M & N. If you are healthy and are looking to reduce your monthly costs, a cost sharing plan like M or N may be the right fit for you.

Remember that the Medigap policy you currently have is guaranteed renewable for life as long as you continue to pay the premiums. So even if you should develop serious health problems you cannot be terminated and you cannot be forced to change to a new plan. In fact, some of the coverages you currently have will not be available under the new program.

Needless to say there will be new pricing available by all Medicare companies with these new modifications and plans. All available options should be investigated as soon as possible by all retirees. A little homework will go a long way to protecting you and help you get the right coverage.

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