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| Changes in Medicare Supplement Plans Coming in 2010 Beginning in 2010, consumers will see dramatic changes in available Medicare Supplement Plans, including the addition of two plans and the elimination of four plans. The changes, which take effect on June 1, 2010, will lower out-of-pocket expenses to consumers and give consumers some additional benefits in their current plans. Medicare Supplement Plans, also called Medigap Insurance policies, are plans that are sold by private insurance companies to cover healthcare costs that are not covered by Medicare in Original Medicare Plans. Individuals are eligible for Medicare healthcare coverage if they are at least 65 years old or have a qualifying disability. Currently, there are 12 different types of Medicare Supplement Plans, labeled Plan A through Plan L. Each different plan offers a unique set of benefits. Different plans may be available in different parts of the country. Medicare Supplement Plans must abide by all Federal and State laws that are designed to protect consumers. However, because these plans are sold through private insurers, prices for the same plan may vary from insurer to insurer. Medicare Supplement Plan Additions and Changes The two new Medicare Supplement Plans include Plan N and Plan M. Plan N will offer similar benefits to Plan F along with a $20 co-payment for doctor visits and a $50 co-payment for visits to the emergency room. Plan N will cost about 70 percent of Plan F. Medigap Plan M also offers similar benefits to the current Medigap Plan F. However, Medigap Plan M will cover only 50 percent of parts A and B deductibles. Medigap Plan M will cost about 85 percent of Medigap Plan F. All Medicare Supplement Plans will have a hospice care benefit added to them. Also, Plan G will have 100 percent coverage for excess charges; it currently has 80 percent coverage for such charges. Medicare Supplement Plans Being Eliminated Plans E, H, I, and J will no longer be offered beginning in June 2010. The preventative care and at-home-recovery benefits will also be eliminated from Medigap policies. Seniors are advised to review their Medicare plans to see if they will be effected by the changes or if they can get lower rates with the new plans. They may also wish to consider obtaining Medicare Part D to cover some costs of medications. Medicare Part D helps to reduce the cost of many medications, but may not be used in conjunction with some Medicare Plans. Therefore, it is recommended that all Medicare subscribers review their options with an advisor that can provide specific information and advice on a case-by-case basis to Medicare subscribers. More Changes to Medicare In addition to the changes to Medicare Supplement Plans, there will be more changes to the Medicare program, in general. Some of these changes include increased rates for deductibles and other benefits. Also, many insurance companies are no longer offering some Medicare options, including PFFS plans, in order to offset the increasing expenses for healthcare providers and insurance carriers. All Medicare subscribers are encouraged to review all changes to the Medicare options that may be available to them. Open Enrollment for changes to Medicare Plans begins on November 15 and ends on December 31, 2009 for the 2010 year. |
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