Archive for the ‘medigap changes’ Category

Medigap Changes Effective June 1, 2010

Friday, May 7th, 2010

New laws passed this year have necessitated a change to current Medigap policies.  Said Medigap changes are effective June 1, 2010, and included in this article are key changes to look out for if buying a new policy on or after the first of June this year.

Hospice Part A Coinsurance – This benefit is now a standard feature for all Medigap plans effective on or after June 1, 2010.  Medigap Plan K will cover 50% of the costs while Plan L will cover 75% of the costs for Hospice Coinsurance.

Part B Coinsurance – All Medigap policies pay Part B coinsurance and copayments at 100%, except for Plans K, L and N, which now require policy holders to pay a portion of Part B coinsurance and copayments.  This may result in lower premiums for these three plans.

Discontinued Plans – Medigap plans E, H, I and J will be removed effective June 1, as the Preventive Care Benefit and At-Home Recovery Benefit have both been removed.  With the current Medicare structure, plans E, H, I and J have become identical to other Medicare Supplement plans, and are no longer necessary. 

Changes to Plans D and G – Plans D and G effective on or after June 1, 2010 now have different benefits from pre-June 1, 2010 Plans D and G. 

New Plans – Plans M and N – Medigap plans M and N make their debut on June 1, replacing Plans E, H, I and J.  Both Plans M and N are similar in several ways to the existing Plan D, with a few changes to the coverage and payment schemes.  However, while Plans M and N may help you save money, it must be noted that the $135 deductible normally included does not apply for these new plans, nor do they cover excess charges allowed by most states.  Currently, it is very uncertain how consumers would react to the launching of these two new plans.

As you can see, the new laws have resulted in a lot of changes to the existing Medigap structure, but experts believe this would mostly be a good thing for those wanting to take advantage of a Medigap plan on or after June 1.  Plan M, for instance, is expected to be approximately 85% of Plan F’s cost, and 92% of the current Plan D, so one interested in the new plans may end up saving more money compared to if he or she would take advantage of it right now.  But again, one must be wary of the deductibles and excess charges not covered by the new plans.

Plan A is a mandatory policy for insurance companies who sell Medigap.  If other plans are offered, then Plan C and Plan F are mandatory for these insurance companies.  Not all types of Medigap policies may be available in your state, so it is highly recommended that you call your State Insurance Department or State Health Insurance Assistance Program for more details.

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