Changes in Medigap Insurance
In attempt to make the "alphabet soup" of Medigap Plans a little less confusing, and to eliminate redundancy, as well as to offer Medicare consumers some more affordable options, in 2009 the National Association of Insurance Commissioners (NAIC) proposed some significant changes to the standardized Medigap Plans. This included the elimination of some plans and the addition of others. The changes went into effect in June 2010.
The Changes
As of June 2010, people shopping for Medigap insurance will see the elimination of 4 of the existing standardized plans H, I, J and E; and the addition of two new ones, Plan M & Plan N.
According to most health insurance industry experts, until the addition of the new Plans, Plan F offered the best additional benefit package for its average price point. The new Plans, designated M & N were designed to offer similar benefits to Plan F – but will be significantly lower in cost, some 70 – 85% respectively. However these plans will also include copays. Other changes going into effect 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.
Consumer advocates and health insurance professionals alike welcome these changes - especially the addition of the Hospice benefit, and the more affordable Plans M and N.
In addition to these detailed changes to the plans available themselves, the GINA Requirement enacted by Congress also goes into effect in 2010. GINA stands for Genetic Information and Non-Discrimination Act, and it has been designed to protect seniors from being denied coverage, or having to pay higher premiums for Medigap insurance, based on information obtained from a genetic screening test.
If you already have one of the eliminated Plans, E, H, I or J purchased prior to June 2010 - you may keep it, but you may want to look into another Plan that may offer you more benefits at a lower cost.