On June 1, 2010 the Medicare Modernization Act will be offering two new Medicare Supplement plans nationwide, and will be eliminating four plans.  There are currently twelve standardized Medicare Supplement plans available, plans A thru L.  Medicare Supplement plans must abide by all Federal and State laws that are designed to protect consumers.  However, because these plans are sold through private insurers, prices for the same plan may very from insurer to insurer.

• Plan M, will use ‘cost-sharing as a method to keep monthly premiums lower.  Meaning, for a lower premium, the insurer will split the Part A deductible ($1,100 in 2010) with the insurance company 50/50.  The insured pays half and the insurance company will pay the other half.  Plan M will not cover any of the Part B ($155) deductible.  The monthly premiums are about 15% less than Plan F.
• Plan N, will be similar to plan D although Plan N will have a $20 copay for doctor office visits, and a $50 copay for emergency room visits.  It is expected the copays will go into effect after the Part B deductible ($155) is met.  The monthly premium is around 30% less than a plan F. 
• New Rates.
   

Medicare supplement plans being eliminated, are Plans E, H, I and J.  These plans will no longer be offered for new coverage after June 1, 2010, current policy holders of these plans will not be effected.  You can keep these plans as long as you like.  Although you should consider moving to one of the new “Modernized” plans with effective dates of June 1, 2010 and after.  Because the new rates will ultimately be more competitive than the “Frozen” plans; E, H, I and J.

Other Medicare changes effective 6/1/2010:

• Hospice coverage will be added to all plans.
• Companies offering Plan A must also offer plans C and F.
• Preventive Care and At Home Recovery Not covered by Medicare will be removed from all plans that included them.  Medicare has decided these benefits, which are not used frequently, will not be continued after June 1, 2010.
• New Plan G has been created, which is similar to the current Plan G, except that the 80% ‘Medicare Part B Excess’ benefit is being replaced with 100% Medicare Part B Excess benefit.

All changes are to the Standardized Medicare Supplement plan with an effective date of June 1, 2010.  All current and new subscribers should review their current and newly available plans to make sure the Plan they choose fits their unique needs.

Applying is easy: Simply print and mail the completed application along with a copy of your Medicare card (Red, White & Blue card), along with a check for the first months premium make payable to the appropriate company.  Please call with any questions.

If you would like a careful analysis, feel free to contact me anytime, I will be happy to help.

John Conner
Health & Medicare
10425 Saddle Creek Drive
Sacramento CA 95829
www.JohnConner.com
john@johnconner.com
800-700-1246 - office
800-995-9913 - fax
916-240-6422 - cell

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