Medicare Supplement Plan J, one of the four Medicare supplements, expired on May 31, 2010. A comparison of this Medicare supplement to current plans follows for anyone currently on Plan J.
Medicare Supplement Plan J Coverage
Medicare Plan J offered the most comprehensive coverage of any of the supplements available prior to its cancellation. It filled every gap left by Medicare Parts A and B, including:
- Medicare Parts A and Part B Deductibles
- Medicare Parts A and Part B Coinsurance
- Medicare Part B Excess Charges
- Hospice Care Coinsurance
- Skilled Nursing Care Coinsurance
- Foreign Travel Emergencies
Plan J bears a striking resemblance to Medicare Supplement Plan F. Another reason that Medigap Plan J stood out was because prescription drug coverage happened to be included. While a nice feature, once Medicare Part D was introduced as an option for prescription drugs, such a benefit was no longer necessary.
Should I Change From Medicare Plan J?
The first—and most obvious—reason to switch from Medigap Plan J is that you are charged for additional coverage that is free through Medicare. What isn’t so obvious is how insurance works against Medicare Supplement Plan J’s rates.
Insurance companies are in business to make money. How they decide whether they’re doing so is based on the revenue generated from a particular plan verses the money paid out.
Here’s why your rates will continue to increase over time if you stay with Plan J:
Medigap Plan J was eliminated as an option for individuals on Medicare on June 1, 2010, which means there haven’t been any new enrollees since then. From the insurance company’s perspective, there are no new revenue sources for that plan. Additionally, those who are on Plan J are aging and will be needing medical services more frequently. At the same time, expenses to operate Medigap Plan J are also increasing. In order for it to remain profitable, prices must increase as well.
What Plan Should I Switch To?
That answer depends on the individual. We will work with you to get the best combination of coverage and price to suit your needs. Use the form on this page to get started. We will look at your individual quotes and help you decide if there is another plan that better suits your needs.