In another blog post, we noted the supplemental Medicare insurance changes coming in June 2010. 4 of the 12 plans that make up the complete list are being eliminated, and two are being added. The plans on the chopping block are E, H, I and J (as well as the high-deductible Plan J). The new plans are M and N.
In this post, we want to discuss changes to other Medicare supplement insurance plans that, we believe, will be welcomed by consumers seeking to purchase Medigap insurance. Some of the changes affect all the plans; others are specific to individual plans.
Two of the most significant changes affect all supplemental Medicare insurance plans sold in the United States. One eliminates preventive care and at-home recovery benefits from all plans. The other adds a hospice care benefit and makes this benefit basic. There are a couple of small caveats to the hospice care benefit, however.
The hospice care benefit requires that recipients pay 5 percent of the Medicare-approved amount for inpatient respite care (excluding room and board). It also requires a co-payment of $5 or less for outpatient prescription drug plans for pain and symptom management.
On other change affects Plan G only. It increases the Medicare Part B excess charge benefit from 80 percent to 100 percent.
All changes to supplemental Medicare insurance plans apply only to plans purchased on or after June 1. These changes do not mean you have to run right out and purchase a new Medicare supplement insurance plan. If you already have any of plans E, H, I or J, you can go on receiving the benefits now available under those plans. All you have to do is continue paying the premiums.
If you find that Plan M, Plan N or another plan would better meet your needs once the changes have been implemented, you can make the switch. This might be an attractive alternative in terms of cost. For example, if you currently have plan F, you can have similar benefits with Plan M, except you’ll pay 50 percent of the Medicare Part A and Part B deductibles. However, Plan M could cost about 15 percent less than Plan F.
Plan M and Plan N:
The new Plan M will include all the benefits of Medigap Plan A. It also will cover half of the Medicare Part A and Part B deductibles and a portion of the cost of foreign travel emergencies.
The new supplemental insurance Plan N will include the Plan A benefits, except it will require a $20 co-payment for office visits and a $50 co-payment for emergency room visits. Also covered are foreign travel emergencies and the Medicare Part A deductible.
Plan N could cost 30 percent less than Plan F, so it’s a good idea to review your coverage and compare it to what’s available after June 1. To learn more, talk to Steve Richardt Insurance and ask about a supplemental Medicare insurance quote.
