Seniors Will Find More Options and Lower Costs for Medigap Insurance in June 2010

Over the next two decades nearly 80 million "Baby Boomers", those born after World War II, will be applying for retirement benefits. In 2011 the first wave of this "Silver Tsunami" hits, with over 4 million boomers becoming eligible for Medicare.

With this burgeoning market, baby boomers approaching retirement are barraged with a dizzying amount of information from private insurance companies regarding Medicare and Medigap Insurance coverage that is at best overwhelming, and at worst confusing and frustrating. This can cause many new retirees to make last minute decisions, which can result in inadequate and more costly coverage down the road.

Add into this mix the fact that significant changes to Medicare Supplemental Insurance, or so called Medigap Insurance, go into effect this June and knowing your Medicare options is more important now, than it ever has been. 

Here's what you need to know

Currently it is estimated that there are over 10 million Americans with Supplemental Insurance or Medigap. With the huge wave of retirees, and many health insurance companies choosing to stop offering Supplemental Plans to cut costs, there will be more and more seniors in need of inexpensive Medigap Insurance.

The good news is that the changes going into effect this June have increased the benefits in the Medigap plans, made them easier to comprehend, and most importantly made them more affordable.

What's New

Beginning this year, Medicare beneficiaries will begin to see some dramatic changes in Medigap standards and regulations. These changes were enacted by the National Association of Insurance Commissioners (NAIC) to try to reduce costs.

Starting in June four plans will be eliminated and two will be added. Plans E, H, I, & J will no longer be offered, and Plans, M & N will be added. There will be a hospice benefit added to all plans. Anyone wishing to remain in his or her old plans will be grandfathered in. More detailed changes include:

• The Home Care benefit will be removed from Plan G, and the 80% coverage will be increased to 100%
• In addition to Plan A, Plans C and F must be sold by all insurers Offering Plan A.
• New Plan M will have increased cost sharing (50% of Part A Deductible & no coverage for Part B deductible.
• New Plan N will have co-pays $10.00/20.00 for Doctor visits, $50.00 ER visits, and no coverage for Part B deductible.

If you already have Supplemental Medicare Insurance, you are not required to make any kind of change to your existing plan, and you may or may not be affected by these changes. However, your insurance company may allow you to switch plans, and maybe even save some money without loosing any benefits.

Also, the modernization program gives insurance companies offering Medigap plans the opportunity to add increased benefits such as for wellness-programs, gym memberships, and eyeglasses. As always, Supplemental Medicare Insurance will be sold by private insurance companies and vary from state to state and carrier to carrier – check with our State Guides for the best options available in your area.

All these letters can begin to sound like so much "alphabet soup" - and these changes can be confusing and frustrating, but keep in mind that they have all been designed to provide seniors with more rights and more coverage, at a lower cost.