Summer Brings Sun, Fun and The New Medigap Options

The Summer. It brings with it visions of happy kids on summer vacation, fireworks, barbecues - and this year several new options for Supplemental Medicare, or so-called Medigap Insurance.

As of June 1st 2010 some sweeping changes to Medigap Health Insurance that were enacted in 2009 by he National Association of Insurance Commissioners (NAIC) went into effect. Medigap Plans, or what is also known as Supplemental Medicare Insurance were designed to make up for the "gaps" or shortfalls that exist in "traditional" or Original Government Medicare. (Note: if you have opted for a Medicare Advantage plan sold by a private insurance company, you do not need, nor are you eligible for Medigap Insurance.

If you already have a Medigap Plan, you are not required to change it - even if you have one of the plans that is no longer being sold. However, you may want to explore some of the new options available to you. If you are looking at Medigap for the first time, as of June 1st, you will find that you have some more affordable options.

The Changes

The most significant change comes in the availability of two new plans, designated Plan M and Plan N. The new Plans were designed to offer popular benefits of other Medigap plans such as Plan F, at a significantly lower cost. These new plans, while requiring copays, carry premiums that can be as much as 25% less then other Medigap plans.

Other changes that went into in June 2010 include:

• The Home Care benefit will be removed from plan G, and the 80% coverage will be increased to 100% coverage
• In addition to Plan A, Plans C and F must be sold by all insurers offering Plan A.
• A hospice benefit will now be included in all plans.  

Remember if you purchased a Medigap health insurance plan prior to June 1st, even if it is one of the eliminated Plans, E, H, I or J - you may keep it. According to Joe Baker, President of the Medicare Rights Center "Consumers need to know they are not required to purchase a new plan and they should rest assured that they will not lose any benefits by not changing." However, they may want to look into another Plan that may offer more benefits at a lower cost.