June of 2010 is the Date for Changes in Medicare Supplement Insurance
Two common terms to refer to Medicare Supplement Insurance are Medigap Insurance or Medigap. The gaps in Original Medicare are filled by Medigap or Medicare Supplements. Medicare Advantage is not the same thing as a Medicare Supplement and the two should not be confused.
Learning now about the changes taking place on June 1, 2010 will have you better prepared to evaluate your current Medicare Supplement.
Medicare Supplement changes were completed at the recommendation of the NAIC. Consumer protection was the main focus of these changes. New benefits are being added and coverage which duplicates Medicare is being removed.
In the early 1990′s the existing plans were created and had become stale. Some of the benefits in the old plans could not even be collected. Many people felt it was high time for changes.
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. Lower cost Plan M and Plan N will be released. Co-pays will be included in these new plans.
4. Insurance companies which sell Plan A must also make Plan C and Plan F available.
5. Plans being offered will include hospice coverage and newly priced.
Originally it was thought that these changes would only affect certain plans and create some new coverage options for Medicare recipients. We now know that is not the situation. In addition to eliminating some of the old plans and creating new plans, all existing plans will be placed in a closed block.
The old higher rates will be gone and new lower rates will be available. This competion is good for the consumer. Hospice benefits will be in all new plans and this is the reason for changes.
Senior aging into Medicare will appreciate these changes as will seniors which are healthy and already insured. Unhealthy seniors whic can’t change may see premium increases. As members of the old plans age, costs of these programs will increse.
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.
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