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BY IRENE C. CARD and BETSY CHANDLER
NEWJERSEYNEWSROOM.COM
YOUR HEALTH INSURANCE
Federal legislation was passed in July, 2008 — The Medicare Improvements for Patients and Providers Act includes changes recommended by the National Association of Insurance Commissioners. This legislation is also known as Medicare Supplement Modernization. Consumers will be protected by these changes and duplicate coverage will be eliminated and additional coverage options will be offered. All of this takes place June 1, 2010. The original ten Medigap policies (A through J) were designed and implemented in 1992 and have not kept abreast of the changes in Medicare. This Modernization of the Medicare Supplement industry is a good thing.
As you read about these changes, please keep in mind that if you have a Medicare supplement and it is working for you, there is absolutely no need to change your coverage. You may keep what you have. You have a legal contract and it will not include any of the changes you read about in this article.
Many of you know that Medigap (also known as Medicare Supplement) policies are identified with alphabet letters A through L and now we also have M and N. Policies E, H, I and J will no longer be offered for sale starting June 1, 2010.
The at-home recovery benefit in Plans D and G will be eliminated June 1, 2010. Part B Excess Charges coverage will increase from 80 percent to 100 percent in plan G. If you have Plan G already, these changes will not affect your current coverage. You will have to apply for the new plan G if you like what you are reading.
A hospice benefit will be offered in all the new plans starting June 1, 2010. In addition, we will have two lower cost plans — M and N. Plan M will only pay half of the Medicare Part A in-hospital deductible which is currently $1100. If you are out of the hospital for more than 60 days and are readmitted, you will have to meet that deductible all over again. This Medigap policy will only pay half of it so you will have to comparer the premium carefully to see if this is an advantageous option for you. Premium information for the new plans has not yet been released.
Plan N has a $20 copayment for every doctor's visit and a copayment of up to $50 for an emergency room visit.
Because the old plans will no longer be available, insurance carriers are in the process of resetting rates with the introduction of the new plans. The Insurance Commissioner of every state has to approve the new rate structure before it can be publicized.
Please do not panic and think that you have to buy a new Medigap policy. As I stated at the beginning of this article, if your present Medigap policy is working well for you, there is absolutely no need to make any changes. If you feel it is more than you can comfortable afford, you may find a less expensive option available to you as of June 1, 2010. Speak with a qualified insurance agent before making any changes to your current coverage.
We will continue to keep you apprised of any additional changes as more information becomes available.
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Here are a couple links to their site: www.mysenior advisorsgroup.com for info on Medicare Advantage, and Medicare Supplemental Insurance, or you can call them at 610-399-8700.
Last week they had very few if any state approvals for plans M or N in PA or NJ. They expect that to change in the next 30 days. Best of luck.