Big Changes Coming to Medicare Supplement Insurance in June of 2010
May 24, 2009 by Derrick Johnson
Filed under Medicare
Medigap or Medigap Insurance are terms often used to refer to Medicare Supplement Insurance. The Original Medicare program has gaps which Medicare Supplement Insurance or Medigap Plans are designed to fill. Medicare Advantage is a separate program and should not be confused with Medigap Insurance.
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 National Association of Insurance Commissioners suggested the new changes to Medicare Supplement Insurance. Consumers will be protected by these new changes. Duplicate coverage will be eliminated and additional coverage will be offered.
The outdated Meicare plans were created early in the 1990’s. Consumers were seeing no benefit from many of the old plans. Time for change was the main focus of the NAIC.
Changes taking Place on June 1, 2010 are as follows:
1. Plans E, H, I and J will be eliminated
2. The Home Care benefit will be removed form Plan G and the 80% excess coverage is being incresed to 100%.
3. Two new plans named Plan M and Plan N will be created. These are lower cost co-pay plans.
4. Plans A and Plans C and F must be sold by all insurers offering Plan A.
5. Newly priced plans will be released which must include a standardized hospice benefit.
These changes wiil have an impact on all plans currently being offered. Originally many people thought this was not the case. The new plans will be created and the old plans will be closed.
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.
Changes taking place should benifit most consumers enrolling in Medicare for the first time. People with health problems may very well have to remain in the old plans. This means only older and sicker people will be in the old plans and cost will be on the rise.
Senior should begin researching their available options as soon as possible. A good idea would be to contact their current Medicare Supplement agent or locate a new agent on the Internet. Simply go to Google or Yahoo to find a new agent.
