Medicare Supplement Insurance

Bill H.R. 6331 made some changes to modernize the plans. Some changes, eliminations, and additions to the plans have been approved, however the states still have to addopt the changes and the companies will need to decide if they are going to offer the new plans, and if so get setup to do so.  So with the information below, please keep in mind it is estimated that these changes will take effect around June of 2010.  Information below is subject to change, and is for informational purposes only.

***NOTE***

THOSE OF YOU ALREADY ON PLAN J OR ANY OTHER PLAN BEING ELIMINATED WILL BE ALLOWED TO KEEP YOUR CURRENT PLAN, YOUR POLICY WILL NOT BE AFFECTED.  After the changes take place, the regulations will not allow anyone new to be placed into those plans that are eliminated, but those in those plans will be grandfathered in.  Call us with your concerns!

Even with the elimination of some plans, we still believe that Plan J currently gives you the best bang for your buck and suggest to get in now while you can if you qualify.   

The new regulations includes transition standards to permit companies to offer existing policyholders or certificate holders the opportunity to exchange their current policy for a new policy. Once we get closer to this time frame, give us a call and we can share the details of that process with you.

As for the NAIC Medicare Supplement Modernization Proposal suggest the elimination of unnecessary and duplicative plans:

• Elimination of Supplement plans H, I, J because these plans no longer offer the drug benefit.  The drug benefit was replaced with Medicare Part D.
• Supplement plan E will also be eliminated, because it becomes identical to a plan already available after the plan benefits are changed.

Modernization of benefits:

• The elimination of the At-Home Recovery benefit (which was offered only in Plans D, G, I, and J)
• The elimination of the Preventive Care Benefit (which was offered in plans E and J)
• Addition of a Hospice benefit as a Core benefit to every pan
• Replacement of the 80% Part B Excess Benefit in Plan G with a 100% coverage benefit

Plans M and N to be added as follows:

• New Plan M will include 50% coverage of the Medicare Part A deductible and does not cover the Medicare Part B deductible.
• New Plan N will not cover the Medicare Part B deductible and will add a new co-payment structure of $10 for each physician visit and $50 for each emergency room visit (which will be waived upon admission to the hospital)

If you are concerned about the changes in the system, give us a call so we can discuss your options.

Posted under Medicare Bills

From the Pacesetter magazine from Genworth Financial Aug/Sep 2008

Congress overrode the President’s veto to pass the Medicare Improvements for Patients and Providers Act of 2008 into law on July 15, 2008.  The main focus of this bill was to eliminate the planned 10.6% decrease in payments to doctors, but the act also contained a number of changes for Medigap and Medicare Advantage (MA) plans.

Starting in June 2010, there will be a number of changes to Medigap policies as recommended by the National Association of Insurance Commissioners (NAIC):

• Plans E, H, I, and J, will no longer be available.
• Two new plans (M & N) will be implemented with higher cost-sharing and lower premiums.

MA plans will also undergo a number of changes:

• Marketing of MA plans will be significantly restricted. Cold calling, marketing at educational events, and offering meals to seniors are prohibited.
• The Centers for Medicare and Medicade Services are requiring MA plans to limit compensation paid to agents to incent agents to enroll seniors in the plans that best meet their needs.
• Payments to MA plans were cut by $12.5 Billion over 2009-2013.
• Private-fee-for-service MA plans are required to build provider networks by 2011 and to have Quality Improvement plans by 2010.

We believe that the changes liste above will be good for seniors and the Medigap market.  There is another planned decrease in pyaments to doctors (20%) scheduled for 2010.  That will open the door to more potential changes to Medigap and MA plans. Stay tuned…

***NOTE***

Those of you currently on a plan that is to be eliminated, will continue on your plan, and you will not see any changes.  After the regulation takes place, no new business will be allowed into those plans.  If you have any concerns, please call us!.

Posted under Medicare Bills

Google is trying to expand the web and make it easier for people to find information that has been written by an expert. With the Internet today, you just never know if you are getting real information, so they created the Knol, which is a unit of knowledge. Ours which you can find through the link below is about… you guessed it, Medicare supplement policies. Please let us know of any other topic that you would find useful. Chances are, you are not the only one with that question, or wondering about that one thing.

View our Google Knol here

Posted under Medicare Supplement

Posted under Part D