Medigap or Medigap Insurance are terms often used to refer to Medicare Supplement Insurance. The Original Medicare program has gaps which Medicare Supplement Insurance or Medigap Plans are designed to fill. Medicare Advantage is a separate program and should not be confused with Medigap Insurance.
Learning now about the changes taking place on June 1, 2010 will have you better prepared to evaluate your current Medicare Supplement.
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.
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.
The new Changes are as Follows:
1. The plans being eliminated are Plan E, Plan I and Plan J
2. The Home Care benefit will be removed form Plan G and the 80% excess coverage is being incresed to 100%.
3. Two new plans named Plan M and Plan N will be created. These are lower cost co-pay plans.
4. Insurance companies which sell Plan A must also make Plan C and Plan F available.
5. A hospice benefit will be included in all new plans being released.
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.
New pricing will be available by all companies with these new plans. Meaning that companies no longer in the market will most likely get back in. More competition was the plan. Because of the new Hospice benefit all plans must be changed.
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.
Researching these changes now would be a good idea. Seniors should get in touch with their agent or try to locate an expert on the Internet. Yahoo, Google and MSN are good places to locate an expert.