Amendments made in 2010 for Medicare Supplement

As of June 1, 2010, Medicare Supplement Insurance (Medigap) added two new options for consumers – Medicare Supplement “M” and Medicare Supplement “N”. At that time, Medigap Plans E, H, I and J was canceled as the Preventive Care Benefit and At-Home Recovery Benefit was removed as they are the same as the other Medigap plans. Medicare considered these two benefits unnecessary in the current Medicare structure. In addition to these changes, a new Hospice Care Benefit Co insurance coverage was added to all new Medicare Supplemental Insurance policies.

Current policyholders will be allowed to maintain existing insurance policies, but as of June 2010, registration ended in ALL current plans. Existing Medigap policies are split into a group and all plans purchased after June were split into new policy groups. It is not necessary to buy one plan against another (buy the plan that fits), as all plans purchased after June 1 are included in the draft of the “New” Plan. However, it was unclear which supplement providers will offer the new plans N and M. Since most insurers offer multiple plans, it is important to look for the best price.

An independent and qualified Medicare Supplement Advisor is strongly recommended, as the agents employed by the company will only propose the plans of their companies. An independent consultant can assist you today in finding a plan and offer alternatives each time a new plan is introduced. For people who turned 65 before June 2010, the independent consultant can provide services today and save time each year when the new plans and rewards are available.

New Medigap design is here:

Medicare Supplement N has similar benefits to the Medicare Supplemental Insurance Plan D (not F as others have suggested), but there is a $ 20 cost for physician visit and a $ 50 cost for visit to emergency room. There is anticipation that this additional payment will apply after the deductible of $ 135 has been paid. However, there is some uncertainty about how the deductible and co-payment will be coordinated. The good news – these plans are meant to have premiums around 70% of the cost of Plan F or about 77% of the current Medigap Plan D. Medigap Plan M will also have similar benefits to Medicare Supplement “D” but will only cover 50% of Part A deduction, none of Part B deductible, but no co-pay. The cost of Plan M is expected to be approximately 85% of the Medigap Plan F (or 92% of the current Plan D).

Industry experts are thrilled with these changes as consumers are attracted to lower premiums. Unfortunately, these plans were designed by academics and bureaucrats who have no understanding of what consumers want. We are not sure if the new plans fit exactly what consumers want. These plans (M & N) do not include the excess of $ 135 or the overrun fees allowed by many states. However, it is expected that Medicare Supplement Plan N and Plan M will bring real savings to consumers.