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.

The National Association of Insurance Commissioners suggested the new changes to Medicare Supplement Insurance. Consumers will be protected by these new changes. Duplicate coverage will be eliminated and additional coverage will be offered.

The outdated Meicare plans were created early in the 1990′s. Consumers were seeing no benefit from many of the old plans. Time for change was the main focus of the NAIC.

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

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

2. The Home Care benefit will be removed form Plan G and the 80% excess coverage is being incresed to 100%.

3. Lower cost Plan M and Plan N will be released. Co-pays will be included in these new plans.

4. Companies offering Plan A must also offer Plan C and Plan F.

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.

Changes taking place should benifit most consumers enrolling in Medicare for the first time. People with health problems may very well have to remain in the old plans. This means only older and sicker people will be in the old plans and cost will be on the rise.

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.

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