June of 2010 is the Date for Changes in Medicare Supplement Insurance

By Derrick Johnson

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.

Medigap plans will be affected by the changes taking place in June of 2010 so you should learn about these changes now.

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.

The current supplemental Medicare plans have been in existence since the early 1990s and have become outdated. Many of the existing plans offered coverage from which the consumer received no benefit. The National Association of Insurance Commissioners NAIC felt that it was time for change.

Changes taking Place on June 1, 2010 are as follows:

1. Plan E, Plan I and Plan J are being eliminated.

2. Plan G currently covers 80% of doctors overcharges and will change to cover 100%. Benefits for Home Confinement will be eliminated.

3. Co-payments will be required in two new lower cost plans. They will be called Plan M and Plan N.

4. Plans A and Plans C and F must be sold by all insurers offering Plan A.

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.

All companies will be allowed to reset rates with the introduction of the new plans. This means companies that are no longer competitive will be able to reset pricing. This will create a more competitive marketplace. The reason that they are able to do this is that all new plans must include a Hospice benefit.

The proposed changes are good for consumers aging into Medicare and healthy people already protected by Medicare Supplemental Insurance. What about those unhealthy seniors stuck in the old plans? Because no more of the old plans are being offered, premiums in these plans may greatly increase and unhealthy seniors cant change plans.

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. - 23211

About the Author:

DJ and his company are experts on Mutual of Omaha Medicare Supplement Insurance and AARP Medicare Supplement Insurance and can be reached on his company website.